For the majority of high-debt countries, the course of the yields on their government bonds is driven mainly by supply side factors and not demand (i.e. government expenses or taxes) factors. Research limitations/implications Given that the economies of certain (mostly small) countries are ...
Briefly explain why bonds of different maturities have different yields in terms of the expectations and liquidity preference hypotheses. Briefly describe the implications of each hypothesis when the yield curve is upward-sloping; downward-sloping. An ins Explain why holding period re...
Why is there an inverse relationship between bond prices and yield? Explain how the market price of a bond is determined. Explain why high-income and wealthy people are more likely to buy a municipal bond than a corporate bond. Why are corporate...
B. A parallel change in the yield curve will cause the spread duration to also change.C. Spread duration measures used for fixed rate bonds include the nominal spread, zero-volatility spread, and option-adjusted spread (OAS). 正确答案:B 分享到: 答案解析: Spread duration measures the ...
a. Explain why the normal yield curve has the shape it does and draw it. b. Explain why the inverted yield curve has the shape it does and draw it. What is this indicative of? Explain the reason banks cannot lend out all their reserves. ...
"Right now, we're seeing the 10-year treasury yield bump up from its low point this past September, and mortgage rates are following a similar pattern," Horvat says. "However, rates are still much lower than we've seen them the past two years, so buyers that have been wait...
Explain why greater volatility or a longer maturity period provides a higher premium return on both call and put options. Why would households or firms be willing to buy bonds that yield a negative return or to save into bank accounts that pay negative interest rates? Brie...
Extensive work carried out by Dean and co-workers (43), on the evolutionary adaptation of isocitrate dehydrogenases for NAD+ over NADP+, demonstrated that removing a similar overhanging arginine residue that hydrogen bonds with the 2’-phosphate contributed toward NADH preference. Remarkably, despite ...
All these studies, however, are insufficient to explain the inception of ‘peri-condensed aromatic hydrocarbons’ with only pi-bonds between carbon atoms, which can be present in large amounts in flames. We have proposed a new mechanism that explains the nucleation of peri-condensed aromatic hydro...
What is the yield to call, and why is it important to a bond investor? What results a premium on bonds for a corporation? Explain why a corporation's continuous life and transferability of ownership may be a benefit. Why would you use bond issuance (bond offering...