Answer:
b. The bond puttable in 10 years will depreciate more than the bond puttable in 5 years
Explanation:
Data provided in the question
20 -year corporate bond i.e issued at par at 10%
One issue is for 5 years
other issue is for 10 years
Now if the interest rate rise by 200 basis points
So,
Based on the above information
If a bond is issued at a future date, any price drop due to higher interest rates will be eliminated as the holder is able to return the bond to the issuer earlier
Hence, the option B is correct
Answer:
The right option is (B)
Explanation:
There are various tools which are used to analyse data and to extract important information from them. Data mining tools are used vigorously to extract key elements from raw data and then to predict or forecast future results. Overall, the data mining tools are used in various fields such as economics, earth science, engineering, physics etc.
Answer:
Both risk and risky often connote a negative meaning of something related to or involving dangerous and perilous outcomes. Risky is the adjective form of the base word risk. The difference between risk and risky lies in their grammatical categories. The difference between risk and risky lies in their grammatical category. The key difference between risk and risky is that risk is a noun and the verb form whereas risky is the adjective form of the same word.
Explanation:
