Please describe the different types of bonds and compare the yields associated with each type of bonds. Which factors influence the yield of each type of bonds? Which type of bond is associated with the lowest yield/interest rate out of all outstanding bonds during a particular time period? How the Fed could influence the bond yields? Would expect bond yields/interest rates to be negative in either nominal or real terms? If so, can you provide such an example?

Please describe the different types of bonds and compare the yields associated with each type of bonds. Which factors influence the yield of each type of bonds? Which type of bond is associated with the lowest yield/interest rate out of all outstanding bonds during a particular time period? How the Fed could influence the bond yields? Would expect bond yields/interest rates to be negative in either nominal or real terms? If so, can you provide such an example?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 3Q: The rate of return on a bond held to its maturity date is called the bonds yield to maturity. If...

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Please describe the different type of bonds and compare the yields associated with each type of bonds?Which factors influence the yield of each type of bonds? Which type of bond is associated with the lowest yield/interest rate out of all outstanding bonds during a particular time period? How the Fed could influence the bond yields? Would you expect bond yields/interest rates to be negative in either nominal or real terms? If so, can you provide such an example?
Describe the relationship between bond prices and inclation. would you be more inclined to buy bonds if you anticipate interest rates to rise fall.
Which one of the following is the reason that bonds may sell at a discount or premium? Select one: a. Market conditions caused the coupon rate of interest to change between the time the bond agreement was written and the date the bonds were actually issued to investors b. The bond issuer failed to consider the market yield rate when the bond agreement was created c. The bond issuer adjusted the coupon rate to match that of other bond issues d. The market yield rate fluctuated between the time the bond agreement was written and the date the bonds were actually issued to investors
What does "bond price elasticity" mean? How does the price elasticity of bonds compare to the yield to maturity of zero-coupon bonds? Why? Which means that zero-coupon Treasury bonds are more volatile than high-coupon Treasury bonds in terms of market value.
Which of the following statements is not correct? a) The export value of the bond; the value the investor pays when buying bonds b) Nominal value of the bond; is the value written on the bond c) Another reason for the difference in bond market prices is the dividend paid to bonds. d) Periodic interest amounts on bonds are calculated at nominal value. e) Market value of a bond is equal to the present value of the interest to be paid by the bond and the principal amount to be paid at the end of maturity. ------------------ What is the market value of İdil Gıda's bond with a nominal value of 15000 USD, maturity of 3 years and 30% annual interest payment, assuming that the desired yield rate is 36%? a) 12500b) 13494c) 9000d) 5456e) 7594 ============ What is the market value of Beril Gıda A.Ş.'s bond with a nominal value of USD 12,000, maturity of 5 years and an annual interest payment of 25%, when the desired rate of return is 25%? a) 18000b) 15000c) 12000d) 16000e)…
Which of the following statements correctly describes the relationship between a long-term bond’s market value, its coupon rate and the relevant yield to maturity? A. When bonds are initially issued, the coupon rate is generally set equal to the required yield to maturity so that the company can issue the bonds at their face value. B. If at any point in the bond’s life its coupon rate is less than the market determined yield to maturity, its market value at that time will be less than the face value of the bond. C. More than one of the other statements are correct D. A government bond with a fixed coupon rate may be valued below its’ face value even though the promised cash flows are effectively riskless. E. None of the other statements are correct Is "B" is the correct answer?
Which of the following statements is CORRECT? a. If the Federal Reserve unexpectedly announces that it expects inflation to increase, then we would probably observe an immediate increase in bond prices. b. The total yield on a bond is derived from dividends plus changes in the price of the bond. c. Bonds are generally regarded as being riskier than common stocks, therefore bonds have higher required returns. d. Bonds issued by larger companies always have lower yields to maturity (due to less risk) than bonds issued by smaller companies. e. The market price of a bond will always approach its par value as its maturity date approaches, provided the bond's required return remains constant. THE ANSWER IS NOT E OR B, apparently, but please let me know if you really think one of those choices are correct.
Assume that inflation is expected to rise soon. How could this affect future bond prices? Would you recommend that financial institutions increase or decrease their concentration in long-term bonds based on this expectation?
How does a bond issuer decide on the appropriate coupon rate to set on its bonds? Explain the difference between the coupon rate and the required return on a bond.
Which of the following statements correctly describes the relationship between a long-term bond’s market value, its coupon rate and the relevant yield to maturity? Group of answer choices A) More than one of the other statements are correct B) None of the other statements are correct C) A government bond with a fixed coupon rate may be valued below its’ face value even though the promised cash flows are effectively riskless. D) If at any point in the bond’s life its coupon rate is less than the market determined yield to maturity, its market value at that time will be less than the face value of the bond. E) When bonds are initially issued, the coupon rate is generally set equal to the required yield to maturity so that the company can issue the bonds at their face value.