Define seasoned bond

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: determine the current market value of the bond.

A: Bond valuation is a method of finding the fair value of the bond. Fair value means the present…

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 the purpose of a bond?

A: A bond is a debt instrument issued by governments and corporations to raise long-term funds. A bond…

Q: What are the key features of a bond?

A: A bond is a fixed income instrument. The bond holders are referred to as the debt holders or…

Q: What are some of the specific bond terms to understand the yield to maturity?

A: Yield to maturity (YTM) is the foreseen absolute profit for a bond if the bond holds until due or…

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 bond spread

A: Answer: The term ‘bond spreads’ or ‘spreads’ refers to the difference in the interest rate between…

Q: Bond issue costs

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

Q: The amortization on a bond premium:

A: The amortization on a bond premium: (d) Is calculated by multiplying the bond’s carrying value by…

Q: Define corporate bond

A: The corporate bonds are those types of bond issued by companies and generally mature with a time…

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: immunization of a bond portfolio

A: Immunization is a risk-reduction approach that aligns asset and liabilities duration to protect…

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 Convertible Bonds.

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

Q: a) Define Bond.

A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…

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 the effect Serial Bonds have on risk from both the perspective of the bond issuer and from…

A: A Serial Bond is that bond issue in which there is maturity, at regular intervals, of a portion of…

Q: Define convertible bond

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

Q: Define the following: Bond: Par Value: Maturity:

A: Given , To define the following terms:- Bond, Par value and Maturity.

Q: Define Yankee bonds

A: Yankee Bonds:-(Defination) Yankee Bonds are issued by Foriegn Entity like foreign bank of Financial…

Q: Describe how a new bond issue with warrants is valued.

A: Companies issues bonds with warrants because they want to decrease the cost of funding, so they…

Q: Define discount bond

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

Q: When do you release a performance guarantee/bond?

A: Bonds: Bonds are the debt obligations of a business on which it requires to pay regular interest to…

Q: Define bonds discount and give an example.

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

Q: Explain payment-in-kind (PIK) bonds

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: Explain rating (bond)

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

Q: Explain bond redemption.

A: A Bond is an instrument which guarantees fixed return to the investor. A bond involves no risk so…

Q: Explain the meaning of duration of a bond. Critically discuss the duration rules of bonds

A: Meaning: Duration is the measure of the price change with respect to change in the interest rate. In…

Q: Contrast the following types of bonds: a. Secured and unsecured. b. Term and serial. c. Callable and…

A: Requirement a:   Secured Bond:   It is a form of investment in debt that is secured with a specific…

Q: Two interest rates are associated with pricing a bond.  Name and describe each.  How are they used ?

A: A bond is a debt instrument with which a shareholder credits cash to an entity, which can be a…

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: What is a securitized Bond?

A: When the outstanding bonds are pooled together to form a new category of product and then is traded…

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 spread, bond yield

A: Spread: It is the difference in the two measurable units. It is mainly used in calculating the…

Q: a) What are the important bond features. Describe each feature what they indicate. What are Discount…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: a. Define what the operational cycle is. b. Indicate in your own words the meaning of the following…

A: Operatinal Cycle: The operating cycle definition defines how many days it takes for a firm to…

Q: What is bond valuation? Give a detail explantion.

A: Answer

Q: Briefly explain types of serial bonds.

A: Bond is a debt security which carries a fixed interest rate. The fixed interest rate is known as…

Q: Define Treasury bond (T-bond)

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

Q: Which bond risk components interact to make immunization successful? Explain how these bond risk…

A: Bond’s duration is adjusted to match its investment horizon. Bond’s duration is the average life of…

Q: Define Original-issue discount bond.

A: Original issue discount: An original issue discount is the variation among selling price of a bond…

Q: Define Serial bonds.

A:

Q: A bond

A: Bonds are common financial instruments which have been explained in the next step.

Q: Discus factors affecting value of a bond

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