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Bonds are valued by discounting the coupon payments and the final repayment by the yield to maturity on comparable bonds. The bond payments discounted at the bond’s yield to maturity equal the bond price. You may also start with the bond price and ask what interest rate the bond offers. This interest rate that equates the present value of bond payments to the bond price is the yield to maturity. Because present values are lower when discount rates are higher, price and yield to maturity vary inversely.
What else can I help you with?
What are the gas prices in Denver?
As of May 15,2008 gas prices are around $3.63-3.69,but prices keep rising and are bound to change,usually vary now by the day...
What is the average cost of a rototiller?
It has been found that the prices of rototillers vary greatly depending on the size and power one is looking for. The prices range from about $400 to over $2500. With these prices, the average would be approximately $1200.
How do prices vary different times of the year?
Prices can vary throughout the year due to factors such as seasonal demand, holidays, and economic conditions. For example, prices for certain goods like winter clothing or holiday decorations typically rise during peak seasons. Additionally, prices for fresh produce often fluctuate based on harvest cycles, with lower prices during peak growing seasons. Sales events and promotions, such as Black Friday or back-to-school sales, also contribute to temporary price changes.
When using lowest prices charged to other customers in support of your price analysis how far should you go back to gather recent prices?
It will depend based on the market. Generally, it will vary from three months to a year
What is the average maize yield per acre in Zimbabwe?
As of recent estimates, the average maize yield in Zimbabwe is approximately 1 to 1.5 tons per acre. However, yields can vary significantly based on factors such as climate conditions, farming practices, and access to resources like fertilizers and irrigation. Efforts to improve agricultural practices and technology aim to increase these yields in the future.
Why do bond prices vary?
Bond prices vary primarily due to changes in interest rates, credit quality, and market demand. When interest rates rise, existing bonds with lower rates become less attractive, causing their prices to fall. Conversely, if credit quality deteriorates, investors may demand a higher yield, which also leads to a decrease in bond prices. Additionally, market sentiment and economic conditions can influence demand for bonds, further impacting their prices.
Do bonds have a high or low risk?
Bonds are generally considered to have a lower risk compared to stocks, as they provide fixed interest payments and return of principal at maturity. However, the risk level can vary significantly depending on the type of bond; government bonds are usually seen as safer, while corporate bonds may carry higher risk, especially those from companies with lower credit ratings. Additionally, factors like interest rate changes and inflation can also affect bond prices and yields.
Do electricity prices vary across the United States?
Electricity prices vary for many reasons. They also vary from state to state. The lowest prices in 2011 were seen in Wyoming, highest prices were seen in Hawaii. Prices vary depending on weather, Power plant locations as well as fuel availability.
True or false rates of interest on bonds vary based on the term of the bond?
True. Rates of interest on bonds typically vary based on the term of the bond, with longer-term bonds generally offering higher yields to compensate for the increased risk associated with a longer investment horizon. Additionally, market conditions, inflation expectations, and the issuer's credit quality can also influence interest rates across different maturities.
How does air pressure vary?
Inversely with altitude, the higher up you go the less air pressure
What graph shows measurements that vary inversely with one another?
An Hyperbola XY=constant K.
How does frequency of a pendulum vary with its length?
The frequency of a pendulum is inversely proportional to the square root of its length.
At constant pressure how does the volume of 1 mole of an ideal gas vary?
The volume varies inversely with pressure.
What are the current prices for items with apostrophe prices?
The current prices for items with apostrophe prices vary depending on the product and location.
How many iron nails can be lifted by the magnets?
That will vary inversely with the size/weight of the nails and directly with the strength of the magnet.
What is cost to Bond a financial officer?
That will vary, depending on the jurisdiction of the agency or company, and the amount of the bond.
What is the difference between directly propotional and inversely proportional?
In directly proportional the two variable vary in the same "direction". So, if one increases, the other increases.In inversely proportional, the two variable vary in opposite "directions". So, if one increases, the other decreases.
