What does continuous compounding mean in macaulays duration
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Can someone explain the reason?? Q. The maturity effect is least likely to hold for a: low-coupon, long-term bond trading at a discount. zero-coupon bond. low-coupon, long-term bond trading at a premium. Solution A is correct. In some situations, the maturity effect may not hold for a low-coupon bond that ...
In Internal Credit Enhancement, isn’t Over-collateralization and Excess Spread Account same, except one provides cushion in monetary terms and other in excess yeild.. ?
Can a detailed explanation be given as to why a coupon bearing bond trading at discount always have a positive current yield? Also what happens when the bond is trading at preimum?
The process of securitization is least likely to allow banks to: originate loans. reduce the layers between borrowers and ultimate investors. repackage loans into simpler structures. SOL:- C obviously bt Doesn’t securitization increase the layers between borrowers and investors? You now have the seller, SPE, servicer, ...
Sometimes we said short term bonds are less volatile And in term structure of yield volatility We said short term bonds are more volatile due to monetary effect. And if term structure of yield volatility is downward sloping then Statememt: ...
Consider the following information for a fixed-rate bond: Yield to maturity 6.57% Annual coupon rate (paid semiannually) 9.00% Market value $11,189,092 Annualized modified duration 4.687985 If the bond’s yield to maturity increases to 7.25%, the bond’s estimated market value will be closest to: $9,746,599. $10,271,142. $10,832,402.