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Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.
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Why would investors buy junk bonds?
Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.
Why would investors buy a poorly rated bond?
They would buy it only if it paid a high interest rate, or if it were being sold at a steep discount
How do bond rating influence which bond investors buy?
In simple terms, the better the rating the safer the investment.
You can buy a $1,000 face value zero-coupon bond for $600, the bond matures in 10 years. How can you describe the circumstances under which you would consider buying the bond.?
You can buy them in $1000 increments, making them easy for everyday investors don't mention any causes until they ask
How do bond ratings influence which bonds investors buy?
In simple terms, the better the rating the safer the investment.
Why do junk bonds have higher yields than traditional bonds?
Junk bonds are risky investments, but have speculative appeal because they offer much higher yields than safer bonds. Companies that issue junk bonds typically have less-than-stellarcredit ratings , and investors demand these higher yields as compensation for the risk of investing in them. A junk bond issued from a company that manages to turn its performance around for the better and has its credit rating upgraded will generally have a substantial price appreciation.
What are some companies that buy junk cars?
There are many companies that buy junk cars. Fast Cash for Junk Cars, Junk the Car, On the Road Salvage, and Copart Direct are all companies that buy junk cars.
If you have a 10 percent coupon bond with 19 years left to maturity the bonds make annual payments and currently sells for 1102.05 what is the YTM?
A bond that pays 1 coupon(s) of 10% per year, that has a market value of $1,102.05, and that matures in 19 years will have a yield to maturity of 8.87%. What does it mean? Well, bond investors don't just buy only newly issued bonds (on the primary market) but can also buy previously issued bonds from other investors (on the secondary market). Depending on whether a bond on the secondary market is bought at a discount or premium, the actual rate of return can be greater or lower than the quoted annual coupon rate. This is why bond investors need to look at YTM, which measures the bond's yield from the day the investor buys it to the day it expires, when the principal is paid to the bondholder.
where can i buy a surety bond?
where can i buy a surety bond
How are Savings bonds different from other bonds?
There are two kinds of bonds: coupon and zero-coupon bonds. A coupon bond pays interest on a periodic schedule--and what the schedule is depends on the bond. When you get the bond, it's got a certain number of coupons attached to it. Each one is dated and says how much interest you will receive when you redeem it. The main part of the bond is the corpus--the "body"--and when redeemed, you will receive the money you spent to buy the bond back. If you buy an investment-grade coupon bond, and its face value is $1,000, you need $1,000 to buy the bond. Note I said "investment-grade" here. If you buy a coupon bond that's in the junk category, quite often they sell at a discount from face value. But junk bonds are a world of their own. Savings bonds are zero-coupon bonds. They sell at a discount from face value--right now it's 50 percent, so if you want a $100 savings bond you need to bring $50. When the bond matures and is redeemed, you will receive the face value of the bond. There are no periodic interest payments with these bonds.
In which case do investors buy stock in expectations of higher profits?
In a bull market, investors buy stock in expectation of higher profits.
Do Saturns handle well in the snow?
Saturns are junk, take it from me...DO NOT BUY ONE!! Saturns are junk, take it from me...DO NOT BUY ONE!!
