An examination of the behavior of corporate bond prices
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An examination of the behavior of corporate bond prices

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Published .
Written in English

Book details:

LC ClassificationsMicrofilm 49583
The Physical Object
Paginationvii, 149 l.
Number of Pages149
ID Numbers
Open LibraryOL1368776M
LC Control Number92896076

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(and stock offerings). Since the relation between bond and stock prices during business cycles is complex, and since the price factors do not play with equal strength on the components of the net change in bond financing, no simple formula in terms of bond or stock prices seems adequate to explain the behavior of the net change. Dynamic Behavior of Bond Prices A. Discounts and Premiums Terms: premium, par Key issues: 1) coupon rate vs. yield to maturity 2) return on bond driven by coupons and change in price 3) over time, bond prices tend to move towards par value 4) bond prices deviate from . primarily by changes in the behavior of market intermediaries and in the supply of and demand for corporate bonds. • A reduction in the capacity and desire of dealers to participate in corporate bond markets as principals could mean that future movements in bond prices in times of stress will be more acute than before. data. Given book leverage and idiosyncratic volatility, the model produces a nonlinear mapping from bond prices to q. I then use the theoretical mapping to construct a time se-ries for q based on the relative prices of corporate and govern-ment bonds, taking into account trends in book leverage and 2.

  The days following the SMCCF announcement also saw a rebound in corporate bond prices, resulting in a substantial easing in the yield spreads on both investment-grade and high-yield bonds (Figure 1); as a result, public issuance of new corporate bonds soared. The scale and scope of both the SMCCF and PMCCF were increased on April 9. A corporate bond currently yields %. Municipal bonds with the same risk, maturity, and liquidity currently yield %. At what tax rate would investors be indifferent between the two bonds? A. % B. % C. % D. % Correct Response: A. If a corporate bond is issued with a coupon rate that varies directly with the required return, the price of the bond will _____. A) equal the face value B) be less than the face value C) be greater than the face value D) be greater than or less than the face value depending on how interest rates vary. The spread between corporate yield curve and and the Treasury curve widens as the corporate bond rating decreases. Pure Expectations Hypothesis the yield is analyzed as a series of expected future short-term interest rates where a series of expected short-term spot rates will reproduce the observed market rates expressed in the yield curve.

For the debt securities portion of the Series 7 exam, you need to know something about to determine bond prices and yields. Make sure you understand which type of bond the question is talking about prior to answering because there are many differences. Practice questions A 6% corporate bond is trading at What yield [ ].   Muni bond quotes are delayed by a day and corporate bond prices, courtesy of Reuters, are updated with a four-hour lapse, just as they are on the NASD site. Malitz concludes the study with a detailed examination of the indentures for a sample of corporate bonds issued from through The results provide an abundance of knowledge about the characteristics of corporate debt. Of particular interest is the fact that not all findings conform to conventional beliefs. The Behavior of Investor Flows in Corporate Bond Mutual Funds. (ICI) fact book. Among bond funds, the total net assets of US corporate bond (including high-yield bond) funds have grown from about $45 billion in to over $ examination of investor flows for bond mutual funds that, with unique features, offer a useful.