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What are some factors that affect the value of a corporate bond?
Wiki User
∙ 12y ago
1. Interest rate at any given time. A. as determined by market factors. B. Influenced by Federal reserve. 2. time to maturity. short,intermediate, or long term. 3. Coupon, rate of interest at the time of issuance.
Also of importance is whether or not the bond is Callable.
That is redeemable by the issuer prior to the original maturity date.
This usually occurs when current interest rates are below those that existed when the
bond was unwritten. In this case the company no longer has to pay the high interest rate (having bought back the original bonds from the current holders) and can issue new bonds (at the assumed lower current rate).
The disadvantage for the holder of the bonds being called(bought back) is that he/she is no longer earning a high interest rate and now has capital that if were to be
reinvested in bonds would be earning a lower interest rate than before.
Thus a callable bond can be considered as having a potential interest rate risk.
Wiki User
∙ 12y ago
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What are the benefits of acquiring information about corporate bonds?
A person can learn about the attractive yields a corporate bond can bring when obtaining information about corporate bonds. Another benefit of investing in a corporate bond is the diversity that is involved in this type of bond.
What is the Corporate Bond Yields?
Corporate Bond yields are the amount of return over a period that a bond will return. A good yield for a corporate bond is between 4 and 8 percent although in the current climate this may dip a little
Which of the following factors will change when interest rates change?
The present value of a bond's payment
Why are corporate bond interest rates higher than government bond interest rate?
Corporate Bonds are usually consider high risk.
A pays interest to the investor.?
corporate bond
What is the value of corporate bond defaults in 2008?
Low but it could have a value.
How do interest rates affect corporate bond value?
When interest rates rise, bonds lose value; when interest rates fall, bonds become more attractive.
How do you find the market value of a corporate bond?
The best way is to find a value a similar bond http://investment-income.net/rates/corporate-bonds-rate-page
What factors affect bond angle of a molecule?
Type of hybridizationthe number of lone pairs and bond pairs
What is corporate bonds?
A Corporate Bond is a bond issued by a corporation as a way to borrow money.
Straight corporate bond?
We provided a corporate bond list, http://investment-income.net/rates/corporate-bonds-rate-page
How many corporate bond funds were there in 1999?
In 1999, there were approximately 100 corporate bond funds
What are the benefits of acquiring information about corporate bonds?
A person can learn about the attractive yields a corporate bond can bring when obtaining information about corporate bonds. Another benefit of investing in a corporate bond is the diversity that is involved in this type of bond.
What is the interest rate on a corporate bond?
The prices of corporate bonds fluctuate as they are traded on the bond market. Like government bonds, a corporate bond pays a fixed amount of interest each .
What are the values of James Bond Cards?
The value of James Bond cards is actually dependent upon a number of factors. Some of these factors would be the age and condition of the cards.
What is the Corporate Bond Yields?
Corporate Bond yields are the amount of return over a period that a bond will return. A good yield for a corporate bond is between 4 and 8 percent although in the current climate this may dip a little
What do corporate bond funds own?
Corporate bond funds invest in a combination of corporate debt, U.S. treasury bonds, or other federal bonds
