Which of the following are generally characteristics of bonds:
A corporate bond paying an annual coupon of £9 matures for £100 on 30 September 2011. What is its price on 1 October 2008 if interest rates are 8.5 per cent?
The 'clean price' of a bond is:
'Accrued interest' is:
You are thinking of making an investment in government bonds and you propose to hold the bonds to maturity. Which measure of bond yield is the most appropriate in making your choice:
If redemption yields on one year bonds are 4.5 per cent while yields on two year bonds are 5.3 per cent, this suggests that the rate on one year bonds in one year's time will be (approximately):
The yields on government bonds are usually less than yields on corporate bonds of similar maturity because:
Which of the following might explain why an upward sloping yield curve is 'normal'?
Standard and Poor's bond rating agency reduces your firm's bond rating from AA+ to AA. The likely effect on your firm's bonds will be:
You hold a portfolio of government bonds and you expect interest rates to fall in the near future. In order to take advantage of this you should now: