Sign Up on QForum Doubt Solving Platform Now! SSEI QFORUM is a doubt-solving knowledge-sharing community where we all brainstorm to crack the toughest questions. You don’t just get access to expert solutions by seasoned SSEI faculty, but also get to level up with your global peers!
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
it says the answer will be one year after the payment, meaning it will be at t=11 right? if so we should take n after that 9 right and not 10. someone please explain
it says the answer will be one year after the payment, meaning it will be at t=11 right? if so we should take n after that 9 right and not 10. someone please explain
Read less
How to convert semi annual effective rate to a stated annual yield using 2nd Iconv function of calculator ? Given I/Y semi annual compounding = 5.592 and then we have to convert to stated quarterly rate ? NOTE – Using 2nd ...Read more
How to convert semi annual effective rate to a stated annual yield using 2nd Iconv function of calculator ? Given I/Y semi annual compounding = 5.592 and then we have to convert to stated quarterly rate ?
NOTE – Using 2nd INCOV function
Read less
hi
so my doubt is in question 2 of the above image
asking price of which bond falls more
so as we can see in the image attached that
volatility is falling and yield curve is becoming upward sloping from flat. That means long term bond yield will rise.
if interest rate rises the value of normal bond will fall for all bonds. When it comes to option- volatility is falling so in both case value will fall.
but when interest rate rises, put is more likely to be exercised and value of call will fall bcs companies would like to loan on a low interest rate.
price of callable bond= price of straight bond – value of call option
price of putable bond= price of straight bond + value of put option
and here we can see value of putt rises and call falls. So technically price of callable bond should fall more. Whereas ans says price of puttable bond will fall more
Read less
Here- 1. For initial investment if we have deducted salvage value of machinery once, why are we again deducting the same in terminal flow? Why is same thing being done twice?
Here-
1. For initial investment if we have deducted salvage value of machinery once, why are we again deducting the same in terminal flow?
Why is same thing being done twice?
Read less
Here- 1. In initial investment we are deducting post salvage value of machinery. 2. Also we in terminal flow are deducting post salvage value foregone. Why is this done twice if once salvage value is considered
Here-
1. In initial investment we are deducting post salvage value of machinery.
2. Also we in terminal flow are deducting post salvage value foregone.
Why is this done twice if once salvage value is considered
Read less
Sir how shall this be solved using the calculator?
Sir how shall this be solved using the calculator?
Read less
Here for finding out present value why is 14% instead of 12% and how to know when to take which rate of interest?
Here for finding out present value why is 14% instead of 12% and how to know when to take which rate of interest?
Read less
Do we need to learn all these differences or only major ones, if only major ones can someone give a list of what those major ones are like i think Contingent assets and liabilities is a major one.
Do we need to learn all these differences or only major ones, if only major ones can someone give a list of what those major ones are like i think Contingent assets and liabilities is a major one.
Read less
