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Author Question: Suppose you are considering two bonds that will be issued tomorrow. Both are rated double A (AA), ... (Read 10 times)

Hunchojack2019!!

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Suppose you are considering two bonds that will be issued tomorrow. Both are rated double A (AA), both mature in 15 years, both have an 8% coupon, neither can be called except for sinking fund purposes, and both are offered to you at their $1,000 par values. However, Bond SF has a sinking fund while Bond NSF does not. Under the sinking fund, the company must call and pay off 7% of the bonds at par each year. The yield curve at the time is upward sloping. The bond’s prices, being equal, are likely in equilibrium, as Bond SF would generally be expected to have the same yield as Bond NSF.

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Marked as best answer by Hunchojack2019!! on Aug 7, 2023

knguyen

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Hunchojack2019!!

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Reply 2 on: Aug 7, 2023
:D TYSM


epscape

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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