0
Will a bond's yield to maturity increase or decrease if a bond 's price increases?
Wiki User
∙ 14y ago
as yield to maturity increases the bonds price decreases, because a higher yield to maturity means its riskier to investors
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Will a call provision increase or decrease the yield to maturity at which a firm can issue a bond?
Callable bonds will pay a higher yield than comparable non-callable bonds. Take from answers.com
Why junk bonds pay a higher interest rate than government bonds of similar maturity?
Interest rates increase as perceived risk increases. Government bonds have virtually no risk. Junk bonds are so called because they carry a high risk of default.
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
What is likely to happen to yield to maturity on bonds in the marketplace if inflationary expectations increase?
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
What causes a shift in the supply curve?
the factors that cause the demand curve for bonds to shift are: increase/decrease in inflation rate increase/decrease of common stock increase/decrease of stock prices useful table :
Will a call provision increase or decrease the yield to maturity at which a firm can issue a bond?
Callable bonds will pay a higher yield than comparable non-callable bonds. Take from answers.com
Why junk bonds pay a higher interest rate than government bonds of similar maturity?
Interest rates increase as perceived risk increases. Government bonds have virtually no risk. Junk bonds are so called because they carry a high risk of default.
What is the movement of atoms in a liquid during a temperature changes both increases and decreases?
As temperature increases, the atoms will move around more energetically - moving on average faster. Translational speeds increase, rotational speeds of the molecules increase, and the magnitude of vibrations of the atoms about their bonds in molecules increase As temperature decreases, the atoms move around less energetically - moving on average slower. Translational speeds decrease, rotational speeds of the molecules decrease, and the magnitude of vibrations of the atoms about their bonds in molecules decrease
What is likely to happen to yield to maturity on bonds in the marketplace if inflationary expectations increase?
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
What can increase or decrease in atoms during ionic bonds?
The number of ions.
What causes a shift in the supply curve?
the factors that cause the demand curve for bonds to shift are: increase/decrease in inflation rate increase/decrease of common stock increase/decrease of stock prices useful table :
Will a bonds yield to maturity increase or decrease if the bond is downgraded by the rating agencies?
Changing of rating, in and of itself, will not affect the yield, but more generally, a more negative market view will see the yield rise and the price fall.
Issuance of long-term bonds that the ratio is less than 1.0 in current ratio decrease increase or have not effect?
increase
What is the effect of temperature on transistor?
conductivity of semiconductors increases with increase in temperature as breakdown of covalent bonds take place in the semiconductor due to increase in temp but more & more increase in the temp may result in the breakdown or damage of the semiconductor which results in the decrease in conductivity of semiconductor
Do bonds have a fixed maturity?
no
Does absorbance increase or decrease as the solution concentration of the substance increase?
The light is absorbed at a specific wavelength and this is because the electrons in the chemical bonds only absorb certain wavelengths of light. So, more concentration, more bonds and more electrons to absorb the light.
