mining corporate bondsconvertible bondscallable and puttable bondsbond’s couponThis article is devoted to the determinants of interest rates on corporate bonds of mining enterprises. The study includes a comparison between the cost of foreign capital as resulting from the issue of debt instruments in...
For premium bonds, the current yield exceeds the YTM. For discount bonds, the current yield is less than the YTM. The cash flows from a bond stays the same, whereas the interest rates fluctuates. When interest rates rise, the present value of the bond's remaining cash flows declines, and...
The Rise of Corporate Bonds in a Low-Rate Era As central banks worldwide maintain historically low interest rates to stimulate economic growth, corporate bonds have emerged as a preferred choice for investors seeking stable returns. Unlike traditiona...
Pricing Corporate Bonds with Interest Rates Following Double Square-Root ProcessCorporate bond pricing modelStochastic interest rateLeverage ratioThis paper develops a corporate bond pricing model following the structural approach in which the dynamics of the instantaneous risk-free interest rate are gove...
Introduction to bond investing, fixed income funds, and how changing interest rates affect prices and yields.
Here, we detail why it is that bonds with longer maturities expose investors to greater interest rate risk than short-term bonds. Key Takeaways When interest rates rise, bond prices fall (and vice-versa), with long-maturity bonds most sensitive to rate changes. ...
Meanwhile, lower interest rates encourage big purchases by consumers and expansion by businesses. These changes feed back into corporate profits, for better or worse. For bond investors, higher interest rates mean higher rates on new bond issues but a decline in the values of existing bonds. ...
Credit risk modeling is used to estimate the default probability, price individual corporate bonds, and measure a portfolio’scredit risk. 1) Default Probability Thedefault probabilityis the likelihood that a borrower will default sometime over the life of the debt obligation. By default it is mean...
Interest Rates and Bond Valuation Spring 2011 Yunling Chen 1 Yunling Chen Outline (Part I) • Terminologies of bonds • Bonds valuation –Bond price (market value) –Yield to maturity –Relationship among bond value, coupon rate, and ...
IMF -企业部门脆弱性与高利率水平 Corporate Sector Vulnerabilities and High Levels of Interest Rates 欧洲央行-通胀和利率上升对宏观审慎政策立场的影响 Implications of higher inflation and interest rates for macroprudential policy stance interest arbitrage and long-term interest rates in korea:韩国的利率套利和...