0
Why is the remaining time to maturity an important factor in evaluating impact of a change in yield to maturity on bond prices?
Wiki User
∙ 11y ago
The longer the time period remaining to maturity, the greater the impact of a difference between the rate the bond is paying and the current yield to maturity (required rate of return). For example, a two percent ($20) differential is not very significant for one year, but very significant for 20 years. In the latter case, it will have a much greater effect on the bond price.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?
The yield to maturity will be 5% since both Face Value and Redemption value are same. If you purchase the bond for 95 or 105 your yield to maturity will change than what the coupon rate is.
Why does maturity date change?
It changes when the issuer does not have the money to pay back the principal and wants to still give out coupon on the bonds.
What is an indexed life insurance policy?
if you have to paid indexation amount your cash value increase and amount,allocate and your indexation. but what is the differences between indexation or non indexation so simply answer indexation is not your fixed premium amount because the amount is fluctuation at your maturity you premium amount change your cash value change because non indexation is a fixed premium amount they can not be change design your plane after your maturity.
Which stakeholders are most important?
The stakeholders that are the most important are the ones that hold controlling interests in a company. These stakeholders can change the makeup of a company.
Do certificates of deposits accept additional deposits?
No. A Certificate of Deposit carries a fixed value. The value is decided at the time of opening a CD and once done; its base value does not change. Though the CD can earn an interest and the final maturity value might change, the amount that was initially deposited does not and will not change. If you wish to make fresh deposits into a CD, it cannot be done. You can only open a fresh CD for the new amount that you wish to add into your existing CD.
Why is the remaining time to maturity an important factor in evaluating the impact of a change in yield to maturity on bond prices?
The longer the time period remaining to maturity, the greater the impact of a difference between the rate the bond is paying and the current yield to maturity (required rate of return). For example, a two percent ($20) differential is not very significant for one year, but very significant for 20 years. In the latter case, it will have a much greater effect on the bond price.
What is important to remember when evaluating acting?
Specific acting standards change from era to era; in general, an actor's performance should contribute to the overall goal.
Are there any uses for setting out bracket sums?
Yes. The default order of evaluating expressions is BODMAS/PEMDAS. To change that order, parts of the expression need to be put in brackets (parentheses). Yes. The default order of evaluating expressions is BODMAS/PEMDAS. To change that order, parts of the expression need to be put in brackets (parentheses). Yes. The default order of evaluating expressions is BODMAS/PEMDAS. To change that order, parts of the expression need to be put in brackets (parentheses). Yes. The default order of evaluating expressions is BODMAS/PEMDAS. To change that order, parts of the expression need to be put in brackets (parentheses).
When evaluating a capital budgeting project the change in net working capital must be considered as part of?
d
What is one reason why information about maternal status is important to Tax officials?
It's important so that the tax office can (a) change the amount of tax the prospective parent pays (if necessary), and (b) prepare a file ready for when the child reaches maturity, so they can be taxed themselves.
Do Cognitive behaviors change with maturity?
yes they do... one that I think of off the top of my head is reasoning.
How can i change your maturity levels at 13?
Be put in the postion of being a teen parent or helping one
Does a glacier change the surface of the earth?
by remaining frozen and staying on the surface
Is charge of a baryon conserved when it undergoes beta decay?
Total charge is always conserved. If an electron is emitted, the remaining particle's charge will change by +1. If a positron is emitted, the remaining particle's charge will change by -1.
What percentage of front brake pad is remaining before you need to change them?
10%
Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?
The yield to maturity will be 5% since both Face Value and Redemption value are same. If you purchase the bond for 95 or 105 your yield to maturity will change than what the coupon rate is.
When to use marginal costing?
Marginal costing is the method of costing for evaluating the changes in total cost due to change in number of units produced.
