0
The mathematical link between a bond's price and interest rate change is the?
Wiki User
∙ 10y ago
Modified Duration
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Why calculate times interest charges earned?
A metric used to measure a company's ability to meet its debt obligations. It is calculated by taking a company's earnings before interest and taxes (EBIT) and dividing it by the total interest payable on bonds and other contractual debt. It is usually quoted as a ratio and indicates how many times a company can cover its interest charges on a pretax basis. Failing to meet these obligations could force a company into bankruptcy. Also referred to as "interest coverage ratio" and "fixed-charged coverage." Investopedia explains 'Times Interest Earned - TIE' Ensuring interest payments to debt holders and preventing bankruptcy depends mainly on a company's ability to sustain earnings. However, a high ratio can indicate that a company has an undesirable lack of debt or is paying down too much debt with earnings that could be used for other projects. The rationale is that a company would yield greater returns by investing its earnings into other projects and borrowing at a lower cost of capital than what it is currently paying to meet its debt obligations.
Is the properties of a metal are related to bonds true or false?
true.
Concalent bonds can best be described as a sharing of electrons true or false?
There are two types of chemical bonds, covalent and ionic. Ionic involve the complete transfer of electrons and covalent involve the sharing of electrons.
What is difference between confirmation and confirmation?
Conformation is the spatial arrangement of atoms in a molecule that can come about through free rotation of atoms about a single chemical bond. It can be changed without breaking bonds. Example. rotation about single bonds produce the cis-trans, and E-Z conformationsespecially of organic molecules.(Think: Conformation: orbiting)Confirmation is the religious ceremony of a bishop praying for the indwelling of the Holy Spirit in a baptised Christian.Read more: http://wiki.answers.com/What_is_the_difference_between_conformation_and_configuration#ixzz1Q7ew2V25
A combined total of 24000 is invested in two bonds that pay 7.5 and 9 simple interest The total annual interest is 1935 How much is invested in each bond?
x = the amount of money that was invested at the first bond y = the amount of money that was invested at the second bond x + y = 24,000 so, y = 24,000 - x 0.075x + 0.09y = 1935 0.075x + 0.09(24,000 - x) = 1935 0.075x + 2160 - 0.09x = 1935 -0.015x = - 225 0.015x = 225 x = 225/0.015 x = 15,000, this is the amount of money that was invested in the first bond y = 24,000 - x y = 24,000 - 15,000 y = 9,000, this is the amount of money that was invested in the second bond Check it: 15,000 x 0.075 = 1,125 9,000 x 0.09 = 810 1,125 + 810 = 1,935
What is the difference between interest and a dividend?
Interest is a payment on debt (such as bonds or bank notes). A dividend is a distribution of earnings to the owners of a firm.
What happens to the bonds between atoms during a chemical change?
They break and new bonds are formed
Why does a company that issues bonds between interest dates collect accrued interest from the bonds' purchasers?
It makes the interest payment process easier - if accrued interest is collected when the bond is sold, then the payment to all bondholders is the same: the interest amount for 3 or 6 months, or whatever the payment period is
Which earns interest stocks or bonds?
bonds
What has the author Pierluigi Balduzzi written?
Pierluigi Balduzzi has written: 'The central tendency' -- subject(s): Bonds, Econometric models, Interest rates, Prices 'A model of target changes and the term structure of interest rates' -- subject(s): Interest rates, Mathematical models
Is there a difference between accounting for conversion of bonds and accounting for the conversion of preferred stock?
Bonds have discounts and premiums and accrued interest. Preferred Stock doesn't.
What chemical changes involve breaking and making chemical bonds?
Breaking of bonds but also formation of new bonds.
What rates do US Saving Bonds offer?
The current interest rates of US Saving Bonds are 0.2 percent for Series EE Bonds. Series I Bonds have interest rate of 1.18 percent. Series HH Bonds have interest rate of 1.5 percent.
A chemical change is any change that?
In a macrscopic scale: alters colour, scent, texture.In a microscopic scale: Break bonds between atoms in a molecule and/or forms new bonds between atoms.
Why does state of mater change?
because the bonds between the molecules are broken
What does change in a chemical reaction?
The reactants change. The chemical bonds between the atoms in the reactants break, and then new bonds are formed, which results in the formation of new products.
What does the effect of rate of interest on bonds?
it will increase the price of bonds
