Explain why yields and prices of debt-instruments are inversely related.
Question:
Explain why yields and prices of debt-instruments are inversely related.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (12 reviews)
Coupon and principal amount are fixe...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Financial Institutions, Markets and Money
ISBN: 978-1119330363
12th edition
Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias
Question Posted:
Students also viewed these Business questions
-
Why bond prices and interest rates are inversely related?
-
Explain why bond prices and interest rates are inversely related.
-
Royal Bank of Canada is one of the largest banks in Canada. According to its 2011 annual report, it had approximately 74,000 employees serving 15 million customers throughout the world. The bank's...
-
Eric Ishton, a manager of the Plate Division for the Stone Ware Manufacturing company, has the opportunity to expand the division by investing in additional machinery costing $430,000. He would...
-
In the movie Wall Street, Bud Fox is a broker who conducts trades for Gordon Gekko's firm. Gekko purchases shares of firms he believes are undervalued. Various scenes in the movie offer excellent...
-
Data from tests of a pump, with a 12.3-in.-diameter impeller operated at \(1450 \mathrm{rpm}\) are Develop and plot a curve-fit equation for NPSHR versus volume flow rate in the form NPSHR \(=a+b...
-
Baltimore Realty, Inc., had the following transactions for the month of June 2010. The following T-accounts have been set up, for Baltimore Realty, Inc., with their beginning balances as of June 1,...
-
Lee Wong, CPA, is auditing the financial statements of the Alexandria Corporation, which has a batch-processing IT-based system for shipping and invoicing that it purchased from a software vendor....
-
Consider the following Demand curve for Uber Rides: Q = = 120 - 4p Suppose that the Supply Curve is perfectly elastic at a price of $20 per unit. 11. Draw both the Supply and Demand functions with Q...
-
Read the Forecasting Supply Chain Demand Starbucks Corporation case in your text Operations and Supply Chain Management on pages 484-485, then address the four questions associated with the...
-
What is the yield-to-maturity of a corporate bond with a 3-year maturity, 5 percent coupon (semi-annual payments), a $1,000 face value, if the bond sold for $978.30?
-
What is the relationship between bond price volatility and term to maturity? What is the relationship between bond price volatility and the coupon rate?
-
In Example 2, it was noted that a recent Pew Research Center survey showed that among 2822 randomly selected adults, 2060 (or 73%) stated that they are Internet users. A technology specialist claims...
-
Jeremy ( unmarried ) earned $ 1 0 0 , 5 0 0 in salary and $ 6 , 0 5 0 in interest income during the year. Jeremy's employer withheld $ 1 0 , 0 0 0 of federal income taxes from Jeremy's paychecks...
-
write on Marketing mix a. Product/service - Type - good, service, idea etc - Features - how will it be different from the competitors? - Identification - brand name, label and packaging - Production...
-
Given the following spot rates, find the forward rates Fo(n.n+1) for n=1,2,3,4. Note the notation Fo(n.n+m) denotes a forward rate over m periods contracted now at time t=0 for effect n periods from...
-
You are making meatloaf with yield: 50, 4 oz portions Ingredient Cost Per Unit 10 lbs ground beef $3.99/pounds 2 lbs ground pork $2.99/pounds 12 whole eggs $2.49/dozen 12 sliced whole grain bread...
-
I m not sure we should lay out $ 3 4 5 , 0 0 0 for that automated welding machine, said Jim Alder, president of the Superior Equipment Company. That s a lot of money, and it would cost us $ 9 3 , 0 0...
-
Use continuity to evaluate the limit. 5 - x? lim In
-
Digital Fruit is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use...
-
Assume that as of today, the annualized interest rate on a three-year security is 10 percent, while the annualized interest rate on a two-year security is 7 percent. Use this information to estimate...
-
You need to choose between investing in a one-year municipal bond with a 7 percent yield and a one-year corporate bond with an 11 percent yield. If your marginal federal income tax rate is 30 percent...
-
a. Determine the forward rate for various one-year interest rate scenarios if the two-year interest rate is 8 percent, assuming no liquidity premium. Explain the relationship between the one-year...
-
What factors contribute to the formation of high-performance teams, and how can organizations cultivate and sustain these dynamics over time ?
-
The standard 2-pass spur gear train with the # of teeth on each gear as shown is driven is driven at 1000 RPM from shaft 2 with a torque of 25 in-lb. All the gears in the set have a diametral pitch...
-
Marigold, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299500 $290000 $319700 $279100 $209800...
Study smarter with the SolutionInn App