The bid yield is always higher than the asked yield because the lower the dollar price, the higher the yield. When a trader is bidding on a bond, he must buy the bond at a low enough price that he can add his t
Duration is a linear measure of the relationship between a bond's price and yield. The true relationship is not linear as measured by the convexity. When convexity is higher, duration will be less accurate in predicting a bond's price for a given change in interest rates. Short-term bonds...
The bond dealer's spread is:A.The bid price plus the asking price.B.The difference between the current yield and the yield to maturity.C.The asking price less the bid price.D.Usually negative, the dealer makes their profit holding the bonds. 相关知识点: ...
How to record a bond that has been issued at discount? What is the difference between stocks and bonds? What is the initial selling price of the bonds? Distinguish between a stock and a bond. Define and describe in detail what the differences are between the stated interest...
It's helpful to know how bonds and bond funds differ. For some, bonds may be the best choice; others may gain the most advantages from bond mutual funds or bond ETFs. The main difference betweenbondsandbond fundsis that bond funds are a bundle of multiple bonds, while solo bonds are no...
On the other hand, bonds are generally considered less volatile than equities. The value of a bond is influenced by changes in interest rates. When interest rates rise, bond prices tend to fall, and vice versa. This relationship between interest rates and bond prices is known as interest rate...
C. both, investors’ expectations about future inflation and a premium for the uncertainty of future inflation. 相关知识点: 试题来源: 解析 C 正确答案:C 答案解析:C is correct. The difference between the yield on a zero-coupon, default-free nominal反馈 收藏 ...
A coupon rate is the interest rate that a bondholder receives for lending money to a corporation. The yield on the bond is the overall percentage return that is calculated from the coupon rate and the price of the bond at the time. The difference between the two can be clearly demonstrated...
bond that has lost part of its yield. That sold bond still has a par value of $1,000, but its effective yield to maturity has fallen due to the passing of time. If the original owner sells it, it may be sold at a spot price that is discounted to compensate for the lost ...
What is the difference between the following yields: coupon rate, current yield, yield to maturity? What is the price of a one-year $1,000 bond with a 3% coupon rate if the yield to maturity is 5.2%? What is the yield to maturity of a 10-year, $1000 b...