Q: What are some examples of embedded options in bonds? How do
What are some examples of embedded options in bonds? How do they affect the price of a bond?
See AnswerQ: Explain the difference between an original-issue junk bond and a
Explain the difference between an original-issue junk bond and a fallen angel bond.
See AnswerQ: All else the same, callable bonds have less interest rate sensitivity
All else the same, callable bonds have less interest rate sensitivity than non callable bonds. Why? Is this a good thing?
See AnswerQ: Two callable bonds are essentially identical, except that one has a
Two callable bonds are essentially identical, except that one has a refunding provision while the other has no refunding provision. Which bond is more likely to be called by the issuer? Why?
See AnswerQ: Briefly explain why a high level of national debt may be detrimental
Briefly explain why a high level of national debt may be detrimental for economic growth.
See AnswerQ: If you believed inflation was going to increase over the coming years
If you believed inflation was going to increase over the coming years, would you rather invest in short-term or long-term debt?
See AnswerQ: What is a collateralized mortgage obligation? Why do they exist?
What is a collateralized mortgage obligation? Why do they exist? What are three popular types?
See AnswerQ: In general, if you buy a call option, what stock
In general, if you buy a call option, what stock price is needed for you to break even on the transaction ignoring taxes and commissions? If you buy a put option?
See AnswerQ: What is a collateralized mortgage obligation? Why do they exist?
What is a collateralized mortgage obligation? Why do they exist? What are three popular types?
See AnswerQ: Which has greater interest rate risk, an IO or a PO
Which has greater interest rate risk, an IO or a PO strip?
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