The curvature movement is a reference to movement in three segments of the yield curve: The short-term and long-term segments rise while the middle-term segment falls, or vice versa. pls explain Curvature in respect to the above statement
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The forced conversion strengthens the issuer’s capital structure and eliminates the risk that a subsequent correction in equity prices prevents conversion and requires redeeming the convertible bonds at maturity. pls explain the entire statement.
if the market price of the share goes above the conversion price then the issuer will call the callable convertible bond . why it is so ?
May a bond have a callable and patable both in 1 Bond
A flight to quality is often associated with bullish falttening, in which the yield curve flattens as long term rates fall by more than short term rates. Please explain
Assuming pure expectations theory holds good, and the forward curve is upward sloping, an investor who buys and holds to maturity will earn a return: A) less than YTM B) greater than YTM C) equal to YTM The answer is B. But I thought ...
Sir told in class that major uncertainty of Short term interest rate is explain by Inflation and Long term is explained by Growth rate and monetary police but in sums they said monetary police explain short term rates major portion and ...
Isn’t the first line incorrect? It should have been “Assume that the interest rates in the future are not expected to differ from current forward rates” instead of spot rates.
Please explain how to calculate value of Bond 8?
Please explain how to calculate value of Bond 8?