Question: Explain how a bond s interest rate can change over time
Explain how a bond’s interest rate can change over time even if interest rates in the economy do not change.
Relevant QuestionsWhat is the yield to call and why is it important to a bond investor? Compute the price of a 3.8 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond?A client in the 28 percent marginal tax bracket is comparing a municipal bond that offers a 4.5 percent yield to maturity and a similar-risk corporate bond that offers a 6.45 percent yield. Which bond will give the client ...A corporate bond with a 6.75 percent coupon has 10 years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.2 percent. The firm has recently become more financially stable and the rating agency ...What is the taxable equivalent yield on a municipal bond with a yield to maturity of 2.9 percent for an investor in the 28 percent marginal tax bracket?
Post your question