Bonds with highest interest rates

    • [DOC File]Buying Bonds - bivio

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      This is known as calling a bond. Bonds are called because an issuer no longer needs to borrow the money, or because interest rates have fallen and the issuer wants to issue new bonds at a lower interest rate. A bond's market value is directly related to interest rates. As interest rates go up, the market prices of bonds go down and vice versa.


    • [DOC File]Investing Basics

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      Now say you still own that bond in 1998, when long-term interest rates touch 5%. If issued today, that same bond would only pay $50 a year, not $100. As a reflection of the fact that interest rates have dropped since the coupon rate was set on the bond, you would actually be able to sell your Yoyo Enterprises bond for more than the $1000 par value.


    • [DOC File]Chapters 1&2 - Investments, Investment Markets, and ...

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      e. If market interest rates remain unchanged, the bond’s price one year from now will be higher than it is today. 12. Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%? Answer: e. a. 10-year, zero coupon bond. b. 20-year, 10% coupon bond. c. 20-year, 5% coupon bond.


    • [DOC File]1) The term structure of interest rates is

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      the interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds. interest rates on bonds of different maturities move together over time. buyers of bonds prefer short-term to long-term bonds. all of the above. only (a) and (b) of the above.


    • [DOC File]PRACTICE EXAM 1

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      47) If the interest rates on all bonds rise from 5 to 6 percent over the course of the year, which bond would you prefer to have been holding? A) A bond with one year to maturity B) A bond with ten years to maturity . C) A bond with five years to maturity D) A bond with twenty years to maturity



    • [DOC File]Interest Rate Risk of Corporate Bonds

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      This specific model contained the highest R-squared of all created models. Spread level (basis points) 0 - 50 50 - 100 100 - 150 150 - 250 250 - 400 400+ ... there is a relationship between the interest rate and the price of a bond there is a risk involved when you have bonds. If interest rates change, the value of the bonds you have will ...


    • [DOC File]CHAPTER 15: TEST BANK

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      F 8. Business purchases of GDP include the purchases of stocks, bonds, and treasury bills. F 9. Fiscal policy includes government purchases of goods and services, government taxes, and Federal Reserve decisions about the money supply in the economy. T 10. Supply side policy can include deregulation and cuts in tax rates. F 11.


    • [DOC File]CHAPTER 7

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      d. If market interest rates remain at 10 percent, Bond Z’s price will be lower one year from now than it is today. e. If market interest rates decline, all of the bonds will have an increase in price, and Bond Z will have the largest percentage increase in price. Bond concepts Answer: b Diff: M N


    • [DOC File]Bonds, Instructor's Manual

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      If interest rates rise, investors can redeem the bonds and reinvest at the higher rates. A sinking fund provision facilitates the orderly retirement of a bond issue. This can be achieved in one of two ways: The company can call in for redemption (at par value) a certain percentage of bonds each year.


    • [DOC File]Chapter 18 Interest Rate Risk

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      Interest Rate Risk 1.1 Introduction 1.1.1 Many companies borrow, and if they do they have to choose between borrowing at a fixed rate of interest (usually by issuing bonds) or borrow at a floating (variable) rate (possibly through bank loans). There is some risk in deciding the balance or mix between floating rate and fixed rate debt.


    • [DOC File]Unit 3 – Investing: Making Money Work for You

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      3. Fixed interest rate for up to 30 years. 4. Low interest rates and lowest RISK (safest bond to buy) 5. “Loaning” money to the government. 6. War Bonds – to fund WWII. 7. Purchase at ½ of the face value ($50 buy for $25) 8. Can be cashed after 20+ years. 9. Penalized if cashed within the 1st 5 years of owning. 10. AKA: Treasury Bonds. E ...


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