Since high yield corporate bonds are the bonds issued by low quality firms, their yield are...
Since high yield corporate bonds are the bonds issued by low quality firms, their yield are usually higher than other bonds. True or False?
Homework Answers
ANSWER: TRUE
EXPLANATION:
High-yield corporate bonds offer higher rate of interest because of their higher risk of default. They are issued by companies with a greater default risk because of which they are unable to obtain an investment-grade credit rating. Higher interest rates are offerred to attract investors and compensate them for the higher risk.
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Since high yield corporate bonds are the bonds issued by low
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The choices for the blanks, in order, are: fall/rise narrowing/widening higher/lower low/high rise/fall decreasing/increasing Corporate-Bond Issuers...
The choices for the blanks, in
order, are:
fall/rise
narrowing/widening
higher/lower
low/high
rise/fall
decreasing/increasing
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Please help! Thank you! Large Stocks Small Stocks Govt Bonds Corporate Bonds Investment High Grade Yield...
Please help! Thank you!
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The prices of low-coupon bonds tend to be less sensitive to a given change in interest rates than high coupon bonds, other things held constant. O O True False There is an inverse relationship between bonds' quality ratings and their required rates of return. Thus, the required return is lowest for AAA-rated bonds, and required returns increase as the bond ratings get lower. O True or False What's TRUE regarding long-term and short-term bonds (assume they have the same par...
The choices for the blanks, in
order, are:
fall/rise
narrowing/widening
higher/lower
low/high
rise/fall
decreasing/increasing
Corporate-Bond Issuers Race to the Market as U.S. Yields Approach Record Low On April 25, 2011, the Fed announced that short-term interest rates would be kept near zero through late 2014. Because corporate bonds are indexed to Treasury yields and the Treasury yield hit nearly all-time lows, issuing conditions became conducive for investment-grade borrowers. Europe's debt crisis fueled the demand for relatively safer U.S. securities, and...
Please help! Thank you!
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Firms with high P/E ratios earned higher average returns than firms with low P/E ratios earned the same average returns as firms with low P/E ratios earned lower average returns than firms with low P/E ratios had higher dividend yields than firms with low P/E ratios
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