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Will a bonds yield to maturity increase or decrease if the bond is downgraded by the rating agencies?
Wiki User
∙ 13y ago
Changing of rating, in and of itself, will not affect the yield, but more generally, a more negative market view will see the yield rise and the price fall.
Wiki User
∙ 13y ago
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Will a bond's yield to maturity increase or decrease if a bond 's price increases?
as yield to maturity increases the bonds price decreases, because a higher yield to maturity means its riskier to investors
What will happen to yield to maturity when market yield increase?
increase
Will a call provision increase or decrease the yield to maturity at which a firm can issue a bond?
Callable bonds will pay a higher yield than comparable non-callable bonds. Take from answers.com
What is likely to happen to yield to maturity on bonds in the marketplace if inflationary expectations increase?
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
What is maturity index of a crop?
maturity index of a crop
Will a bond's yield to maturity increase or decrease if a bond is downgraded by rating agencies?
it will increase due to increase in risk. The bigger the risk the bigger the return and of course more chances of losing big as well.
Will a bond's yield to maturity increase or decrease if a bond 's price increases?
as yield to maturity increases the bonds price decreases, because a higher yield to maturity means its riskier to investors
Will a bond's yield to maturity increase or decrease when the bond become subordinated to another debt issue?
The yield to maturity will most likely increase because the bond will be considered more risky. This means investors will demand a higher yield to own it. Of course, the yield to maturity will only be higher if all the payments are actually made and the bond doesn't default.
Does the yield to maturity of a bond decrease as the bond nears maturity?
Nope it doesn't you suck
What will happen to yield to maturity when market yield increase?
increase
Will a call provision increase or decrease the yield to maturity at which a firm can issue a bond?
Callable bonds will pay a higher yield than comparable non-callable bonds. Take from answers.com
What is likely to happen to yield to maturity on bonds in the marketplace if inflationary expectations increase?
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
Will a bond's Yield to Maturity increase or decrease if there is a change in the bankruptcy code that makes it more difficult for bondholders to receive payments if the firm declares bankruptcy?
Assuming that this situation occurs after the Bond is issued and is trading in the secondary market. All things being equal, if the change is not already factored into the price or yield of the bond it would increase the YTM. However, for a AAA rated bond the increase will be much lesser than the increase on a low rated bond. Typic ally for a low rated bond the increase in YTM wouldn't matter much since the liquidity of it would decrease sharply if the firm were to go bankrupt.
How does reproduction decreases when survival changes decrease also?
The less of a chance of survival there is, the less organisms will survive to sexual maturity (when they are able to reproduce)
Product life cycle of Reynolds pens?
The product life cycle of Reynolds pens consists of the introduction stage, growth stage, maturity stage, and decline stage. In the introduction stage, the pens are launched into the market. During the growth stage, sales and awareness of the pens increase. The maturity stage is characterized by stable sales, and in the decline stage, sales start to decrease as the product becomes outdated or faces competition from newer products.
What is continental's product lifecycle?
Continental, a German automotive supplier, produces a wide range of automotive products including tires, brakes, powertrains, and electronics. Its product lifecycle typically consists of four stages: introduction, growth, maturity, and decline. During the introduction stage, the product is developed and launched. In the growth stage, sales and demand increase. The maturity stage is characterized by stable sales until the decline stage, where sales start to decrease.
What are malkiel's theorems?
Malkiel's theorems summarize the relationship between bond prices, yields, coupons, and maturity. Malkiel's Theorems paraphrased (see text for exact wording); all theorems are ceteris paribus: · Bond prices move inversely with interest rates. · The longer the maturity of a bond, the more sensitive is its price to a change in interest rates. · The price sensitivity of any bond increases with its maturity, but the increase occurs at a decreasing rate. · The lower the coupon rate on a bond, the more sensitive is its price to a change in interest rates. · For a given bond, the volatility of a bond is not symmetrical, i.e., a decrease in interest rates raises bond prices more than a corresponding increase in interest rates lower prices.
