answersLogoWhite

0


Best Answer

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.

User Avatar

Bonnie Monahan

Lvl 10
2y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why is the remaining time to maturity an important factor in evaluating the impact of a change in yield to maturity on bond prices?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Why is the remaining time to maturity an important factor in evaluating 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.