Very Short Question Answer 1. What do you mean by yield to call? An yield to call is the annualized rate of return that bondholders will realize if the bond is called at the stated date before the maturity. 2. What does bond’s duration indicate? Bond’s duration indicates the weighted average number of years that […]
Chapter 5: Bond Valuation
Short Questions Answers 1. What are the key features of bond? Explain. A bond is a long-term promissory note issued by corporations. It is called a promissory note because the issuer promises to pay a stated amount of interest regularly and repay the maturity value at the expiry of the maturity period. While issuing bonds, […]