Why are longer-term bonds more sensitive to a given change in interest rates than shorter-term bonds? Why are zero-coupon bonds more sensitive than coupon bonds of equal maturity? Bond Valuation: Explain how valuing a bond is similar to valuing an annuity plus a...
Explain how zero coupon securities differ from coupon securities. Which are more liquid, in general? Which are more price sensitive? What is the advantage of a zero coupon security in terms of total r Describe the differences between sequential access files and direct access files. ...
Describe the important factors that influence the availability and cost of auto insurance. Briefly define the term "political risk". Briefly explain how a certificate of Insurance supports an indemnification clause. Describe the basic features of the following type of bond: Zero coupon bonds. Identify...
Calculate the bond price of each bond and explain how the number of years to maturity and the coupon rate affect the current price of bonds. Assume a YTM of 7%. A. 4-year bond with a 9% annual coupon B. 4-year bond with a zero coupon C. 15-year bond with Explain how to...