Answer:
The dirty price of a bond is referred to:
- The actual price of the bond.
- Also the cash flows in futureand its values.
Explanation:
Dirty price of bond: The dirty price of bond is referred to the actual and present value of the bond.
Also is referred to the present value of the bonds or the future cash flows.
In financial terms a dirty price of bond is said to be the bond's price which is including all the interests which has been added up since the most recent payment of the coupon.
Price quote of a bond: The price quote of a bond is referred to bond's clean price as it does not affects or reflects on all the interests which have been calculated for the bond since of its most recent coupon payment.
Bonds gets always quotes in terms of clean price but the financial investos always pay them in terms of Dirty price until the bond has to be purchased on the given date of coupon's payment.
Answer:
Explanation:
a. If you believe that the term structure next year will be the same as today’s, calculate the return on (i) the 1-year zero and (ii) the 4-year zero.
b. Which bond provides a greater expected 1-year return? O 1-year zero-coupon bond O 4-year zero-coupon bond
The return on one year bond is = 5.2%
The price of 4 year bond today
Price of 4 year bond today = 807.22
If yield curves is unchanged, the bond will have 3-year maturity and price will be
If yield curves is unchanged, the bond will have 3-year maturity and price will be = 854.04
Return
Return = 5.8%
The longer term bond has given the higher return in this case at it's YTM fell during the holding period(4 -year)
Answer:
True
Explanation:
In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price takers. Market price is set by the forces of demand and supply.
If the seller attempts to set his own price and sets it above the market price, the seller would lose all its customers and make zero sales.
If the seller attempts to set his own price and sets it below the market price, the seller would make losses .
I hope my answer helps you.
Answer:
Preferred stocks
Explanation:
Preferred stocks are those that must be paid dividends first than common stock. The same thing happens in case of bankruptcy: preffered stock holders get paid first than common stock holders, although both are paid after bondholders.
The downside of preferred stocks is that they do not transfer control in the company. While common stock owners have the right to vote in company matters, preferred stock owners do not have that right.
Answer:
¡Quizás no gaste tanto en cosas que son deseos y se centre en las necesidades!
Explanation:
