Which one is better Bond OR Stock? Give two points and elaborate

Q: what does the bond rating depend on?

A: It is a credit rating which represents the creditworthiness of both the corporate and the government…

Q: How do I calculate the market price of a bond?

A: Market price of a bond is the present value of future cashflows.

Q: Is having a call feature advantageous for a bond issuer? Why do you think that is?

A: A call provision seems to be a clause in a bond or even other fixed-income instruments agreement…

Q: what is the price of the Pybus bonds if they receive an A rating will be ​$ ?

A: Semiannual maturity period (p) = 40 (i.e. 20 years * 2) Semiannual coupon rate = 0.055 (i.e. 0.11 /…

Q: The par value of a bond is the

A: A bond is defined as the financial instrument that is used to raise capital from the market at a…

Q: Which

A: Preferred stock is a special type of stock in which shareholder get Fixed dividends and does not…

Q: Which is the relationship between the price and the implicit rate of return of a bond?

A: When a company issues a bond, it asks the investor for a loan, i.e. you're lending the bond issuer…

Q: Why do bond prices and bond yields move inversely?

A: A bond is referred to as a fixed-income instrument since it pays debt holders a fixed interest rate…

Q: What is the link between the price of a bond and the rate of interest? Describe the origins of this…

A: This question describes the relationship between the price of a bond and the rate of interest, as…

Q: What is the purpose of bond ratings? What types of risks associated with a bond investment are these…

A: Investors must analyze the bond ratings before making any investments in bonds.

Q: When comparing the stock market to the bond market, what are the risks and advantages of investing…

A: Introduction: Investing in the stock market is purchasing stock in a business and so gaining…

Q: Ceteris paribus, the longer the term to maturity of a bond, the _____ the bond’s price risk. Group…

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

Q: Which of the following is considered the highest risk investment type? A. Bonds B. Stocks C. Mutual…

A: Bonds are the debt securities issued by corporations to raise money in exchange of fixed interest…

Q: How do I work out the market price of a bond with treasury bond yield and maturity date?

A: The market price of a bond is calculated by comparing the current interest rate towards the interest…

Q: Compare and contrast the similarities and differences between preferred stocks and long term bond

A: Preferred Stocks and Bonds Bonds and preferred stocks  are issued by companies  to investors to…

Q: Bond vs Stock. Which one is better?

A:

Q: If you are to Invest, which will you choose, Stocks or Bonds? Why?

A: Stock are the instruments which represents an ownership interest in a company. Debt or bond…

Q: Is the equation used to value preferred stock more like the oneused to evaluate perpetual bonds or…

A: Answer: The equation used to value preferred stock is more likely to the one used to evaluate…

Q: In the bond market, provide a list of the variables that influence the equilibrium interest rate and…

A: Introduction: The price at which the quantity of cash requested is equal to the amount of money…

Q: What is a share of stock? What is a bond? Explain their differences andsimilarities.

A: The bonds and shares are issued in the capital market in order to fulfil the capital requirement of…

Q: Explain why are the bond prices for A and B different or the same? Explain your answer clearly.

A: Price of a bond is the sum of the present value of all the coupon bonds made and the face value at…

Q: Which of the following would NOT be listed on the face of a bond? Select one: O a. The name of the…

A: Bond is the financial instrument which pays regular income to the bond holder. It may be semi annual…

Q: What is the convexity of a coupon bond? Why do investors tend to have a positive view of convexity?

A: Convexity is an indicator of the skewed relationship between bond prices with yields. Convexity…

Q: What is Difference between stocks and bonds? Which one should we invest?

A: Solution Concept Bond               Bond means the source of finance which has fixed rate of…

Q: What is a clean and dirty price of a bond?

A: SOLUTION:- The clean price of a bond refers to the price which does not includes accrued interest.…

Q: In what major ways do stocks differ from bonds? When would bonds be a better investment choice than…

A: Bonds are units of corporate debts issued by companies and securitized as tradable assets. Shares…

Q: Which type of bonds offer a higher yield?

A: Bonds are fixed-income instruments representing a loan made by an investor to the government or…

Q: What are some common bond duration strategys that Bond portfolio managers would use?

A: Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change…

Q: Discuss at least three differences between investing in common stocks and investing in bonds.

A: Common stocks are the equity securities issued by the companies to the investors whereas bonds are…

Q: What are the best investment options between bonds and stocks?

A: Investing in both bonds and stocks diversifies a portfolio and provides the combined benefits of the…

Q: DISCUSS WHY ESTIMATING THE VALUE FOR A BOND IS EASIER THAN ESTIMATING THE VALUE FOR COMMON STOCK.

A: Stocks are known as equity securities in finance because they make the holder a part owner of the…

Q: What is a bond rating, and how do ratings affectbonds’ prices and yields?

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

Q: d) Calculate Leland's cost of common equity using the Security Market Line.

A: Calculate the beta of the stock (β) by dividing the covariance of stock with the market (Cov L,M)…

Q: Differentiate stocks and bond (essay)

A: The answer for the theory question on distinction between stocks and bonds is discussed hereunder :…

Q: why Stock better than bond? Give two points and elaborate

A: Stock-Stock is a security representing proportionate ownership in the issuing corporation.…

Q: The yield spread between two bond issues reflect more than just credit risk.  What other factors…

A: Bond refers to the securities in which an investor lends money to the government in exchange for…

Q: /hat is the issue price of the bond? (FV ples provided.)

A: Issue Price of the Bonds = Present Value of the Face Value of the Redemption + Present Value of the…

Q: Explain how these bond risk components (Coupons, face value, price of the bond, ytm, time till…

A: Immunization of bond is the plan of action to match the time horizon of the investor with the time…

Q: Which lists the financing options from less to more risky? * A. Preference shares, Ordinary shares…

A: The funds generated by the sale of stock are referred to as Equity financing. The primary benefit of…

Q: The CAPM is one of the most commonly used ways to determine the Select one: O a. Cost of preferred…

A: CAPM means capital assets pricing mode. Cost of equity means cost of raising the money from common…