0
They would buy it only if it paid a high interest rate, or if it were being sold at a steep discount
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Which bond would have a higher interest rate AA rated bond or a BB rated bond?
A BB should as it has more credit risk
What is a high yield bond fund?
High yield bond ( Junk bonds) funds own the debt of companies with less than stellar credit. The yield is higher to compensate the the increased risk that the fund and its investors are more likely to lose money as compared to a bond fund holding higher rated debt.
Why do bond investors have lower required rates of return than do stock investors?
They take less risk, theoretically, so they have lower expectations.
What is the rate of return required by investors in the market for owning a bond called?
YTM
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
Why would investors buy a junk bond?
Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.
Which bond would have a higher interest rate AA rated bond or a BB rated bond?
A BB should as it has more credit risk
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.
The best descriptions of a bond?
A chemical bond holds atoms together.
Who dominates the bond market?
The bond market is dominated by institutional investors, such as insurance companies, mutual funds, and pension funds, but bonds can be purchased by individual investors as well.
If you have a project to redo your pool area and condo parking lot with pavers Do you need a performance bond?
A performance bond protects the association: an association would not be protecting the best interests of its investors if it hired a vendor with no performance bond.
What is a baby bond?
A baby bond, in the United States, is a bond with a value of less than 1000 USD, intended for small investors.
How do bond rating influence which bond investors buy?
In simple terms, the better the rating the safer the investment.
What is a high yield bond fund?
High yield bond ( Junk bonds) funds own the debt of companies with less than stellar credit. The yield is higher to compensate the the increased risk that the fund and its investors are more likely to lose money as compared to a bond fund holding higher rated debt.
What is a low rated potentially high paying bond?
A low-rated, potentially higher-paying bond is a junk bond.
Why do bond investors have lower required rates of return than do stock investors?
They take less risk, theoretically, so they have lower expectations.
What is the rate of return required by investors in the market for owning a bond called?
YTM
