Get premium membership and access questions with answers, video lessons as well as revision papers.
Yield to maturity can be used in estimating whether buying a bond is a good investment. An investor will determine the required yield and compare to yield to maturity to determine whether the bond is a good buy
The yield to maturity can be used to compare bonds with different maturities and coupons since yield to maturity expresses the value of bonds in the same annual terms
Dana05 answered the question on July 18, 2019 at 19:34
- Differentiate between a bull market and a bear market (Solved)
Differentiate between a bull market and a bear market
Date posted: July 18, 2019. Answers (1)
- Differentiate between the nominal and the real interest rate (Solved)
Differentiate between the nominal and the real interest rate
Date posted: July 18, 2019. Answers (1)
- Explain how the yield curve changes with changes in the short term interest rates in the economy (Solved)
Explain how the yield curve changes with changes in the short term interest rates in the economy
Date posted: July 18, 2019. Answers (1)
- Describe the expectation hypothesis (Solved)
Describe the expectation hypothesis
Date posted: July 18, 2019. Answers (1)
- How does the interest rate affect the prices, demand and yields of bonds(Solved)
How does the interest rate affect the prices, demand and yields of bonds
Date posted: July 18, 2019. Answers (1)
- Highlight the risks faced by bond holders (Solved)
Highlight the risks faced by bond holders
Date posted: July 18, 2019. Answers (1)
- Explain the factors that cause a shift in the bonds demand curve (Solved)
Explain the factors that cause a shift in the bonds demand curve
Date posted: July 18, 2019. Answers (1)
- Discuss the factors that cause a shift in the bonds supply curve(Solved)
Discuss the factors that cause a shift in the bonds supply curve
Date posted: July 18, 2019. Answers (1)
- Give any seven characteristics of preference shares (Solved)
Give any seven characteristics of preference shares
Date posted: July 18, 2019. Answers (1)
- Highlight the characteristics of common shares (Solved)
Highlight the characteristics of common shares
Date posted: July 18, 2019. Answers (1)
- What is the function of brokers and dealers in the secondary market (Solved)
What is the function of brokers and dealers in the secondary market
Date posted: July 18, 2019. Answers (1)
- What is the importance of contractual covenants to money lenders?(Solved)
What is the importance of contractual covenants to money lenders?
Date posted: July 18, 2019. Answers (1)
- Differentiate between the primary and the secondary markets in the issuance of shares (Solved)
Differentiate between the primary and the secondary markets in the issuance of shares
Date posted: July 18, 2019. Answers (1)
- Distinguish between equity and debt (Solved)
Distinguish between equity and debt
Date posted: July 18, 2019. Answers (1)
- Discuss contingent financial instruments and give an example (Solved)
Discuss contingent financial instruments and give an example
Date posted: July 18, 2019. Answers (1)
- What are the specifications of a negative covenant?(Solved)
What are the specifications of a negative covenant?
Date posted: July 15, 2019. Answers (1)
- A positive covenant specifies what a borrower must do while a negative covenant specifies what a borrower must not do
(Solved)
A positive covenant specifies what a borrower must do while a negative covenant specifies what a borrower must not do
Date posted: July 15, 2019. Answers (1)
- What are the specifications of a positive covenant?(Solved)
What are the specifications of a positive covenant?
Date posted: July 15, 2019. Answers (1)
- What is a contractual covenant?(Solved)
What is a contractual covenant?
Date posted: July 15, 2019. Answers (1)
- What are the items included in the long term loan agreements?(Solved)
What are the items included in the long term loan agreements?
Date posted: July 15, 2019. Answers (1)