Define bond rating

Q: What is indexed bond?

A: It is a bond with a interest rate which is connected to a index, for example, the bond market…

Q: Define Bond Premium

A: Bond premium: It is the amount because of which the purchase price of bond is more than the par…

Q: What is investment-grade bond?

A: Bond is a financial instrument. Issuer issues bond to raise the fund and payback the amount at the…

Q: The market interest rate related to a bond is also called the

A: The market interest rate related to a bond effective interest rate.

Q: Explain the principle of immunization when used with a bond portfolio. Explain how these bond risk…

A: The principle of immunization when used with a bond portfolio is as follows:The secondary market…

Q: Define seasoned bond

A: A seasoned equity offering often termed as a secondary equity offering refers to a new equity…

Q: Bond issue costs

A: Bond issuance costs are costs associated with the issue of bonds.

Q: What is original issue discount (OID) bond?

A: It is the amount of difference between the amount due at maturity and purchase value. These bonds…

Q: Define Indexed bond.

A: Indexed bond can be defined as a bond in which interest payment are based on some defined price…

Q: What is the carrying amount of a bond?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: the formula for obtaining the gross yield on a bond.

A: Bond is the debt instrument issued by the borrowers to raise funds from various investors. Generally…

Q: Define current yield (on a bond)

A: Answer: Bond is nothing but debt securities issued by a company or government if they want to borrow…

Q: What is a bond payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: Define coupon bond.

A: Coupon bonds are also known as bearer bonds or bond coupons. Coupon bond is a debt obligation with…

Q: Explain purchasing power bond

A: Bonds: A bond, also recognized as a fixed-income security, is a debt instrument shaped for the…

Q: How do bond ratings affect the default risk premium?

A: A premium which is paid by the borrower to its lender in the form of compensation of lender’s money…

Q: Define Coupons bonds.

A: Coupons bonds: The Interest paid on a bond expressed as a percentage of the face value. If a bond…

Q: What is premium bond?

A: Bonds are one of the securities issued for raising finance from debenture holders. Normally bonds…

Q: Define bond amortization.

A: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…

Q: Define convertible bond

A: Convertible bond:  Convertible bond is the bond which can be converted into stocks or equity or cash…

Q: What is return formula for bond?

A: Solution-      Bonds-                  A bond is a fixed financial gain instrument that represents a…

Q: What is a discount bond? A premium bond?

A: Bond: Bond is a kind of debt instrument typically issued by corporations, government organizations…

Q: What is outstanding bond?

A: Bond: It can be defined as the loan given to a business or any other organization by the investor…

Q: Define discount bond

A: Bonds: A bond, also recognized as a fixed-income security, is a debt instrument shaped for the…

Q: What are bond issue costs? What is an underwriter?

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: Discuss different types and characteristics of debt instruments with specific reference of Bonds.

A: Corporate bond- It is a bond issued by a company to fund its business operations, major expansions,…

Q: Describe how bond prices are determined? How do investors and analysts estimate future bond price…

A: A bond is a financial instrument that is sold by large business firms to raise debt funds. This…

Q: Define the term debt securities.

A: Debt security refers to a debt instrument, such as a government bond, corporate bond, certificate of…

Q: What is general obligation bonds?

A: Bonds: A bond, also recognized as a fixed-income security, is a debt instrument shaped for the…

Q: What is the relationship between bond prices and interest rates?  Verbally describe how this…

A: Bonds are long-term debt instruments which are issued by government and large corporate houses for…

Q: ences the bond market's interest rates

A: Step 1 Borrowing profits are strongly influenced by monetary policy—in particular, the interest rate…

Q: Summarize some specific bond terms?

A: A bond is nothing but a financial instrument that a company issues for raising capital. It is…

Q: Explain rating (bond)

A: Bond: Bond is a kind of debt instrument typically issued by corporations, government organizations…

Q: How do bond duration and bond convexity work together to assess the interest rate risk of a bond…

A: This topic discusses bond duration and bond convexity, which work together to estimate a bond…

Q: Describe the types of bonds.

A: A bond is a debt instruments used to raise funds in order to finance different projects or for…

Q: What is a registered bond?

A: Bonds are basically the corporate debt units which are generally issued by companies that are…

Q: Prepare a bond amortization schedule.

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: Define Treasury bond (T-bond)

A: The treasury bonds along with the treasury notes & treasury bills are considered to be risk free…

Q: Define Bonds.

A: Long term liabilities are the financial obligation, due would be settled after a minimum one year…

Q: Are bonds considered as fixed income securities?

A: Bonds are a type of loan taken by the borrower that promises to pay a certain sum as an interest to…

Q: Discus factors affecting value of a bond

A: Bonds are financial instruments which provides fixed returns to its holders. Bonds actually have a…

Q: Trading bond investment are reported at

A: Investments held for trade are recorded at Fair value and their fair value is assessed and adjusted…

Q: What is the importance of Bond

A: Bond market is place there is buying and selling of bonds happen and bonds are traded in the market.

Q: Name the major rating agencies, and list some factors that affect bond ratings.

A: The credit rating agencies provide information to institutional investors and retail investors to…