Question

What do bond ratings indicate? How do bond yield vary with these ratings? Why do banks...

What do bond ratings indicate? How do bond yield vary with these ratings? Why do banks generally avoid junk bonds?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What do bond ratings indicate? How do bond yield vary with these ratings? Why do banks...
What do bond ratings indicate? How do bond yield vary with these ratings? Why do banks generally avoid junk bonds? please explain. thank you
how are corporate bond ratings determined? and how and why do these ratings change once they...
how are corporate bond ratings determined? and how and why do these ratings change once they are arrived at?
1. What is a mortgage-backed security? Who issues these securities? 2. Which bond ratings can be...
1. What is a mortgage-backed security? Who issues these securities? 2. Which bond ratings can be considered investment grade? Junk bonds? 3. How does a mutual fund work? 4. What are ETFs?
Why do banks buy Treasury bonds? a. Banks want to efficiently use their deposits. b. Buying...
Why do banks buy Treasury bonds? a. Banks want to efficiently use their deposits. b. Buying Treasury bonds is a core function of banks c. The Volcker Rule actually prohibits banks from buying Treasury bonds. d. Banks are required to hold a certain percentage of assets in Treasury bonds.
What is interest-rate risk? Why do banks face a significant amount of interest-rate risk? How do...
What is interest-rate risk? Why do banks face a significant amount of interest-rate risk? How do banks manage interest-rate risk?
Why are foreign central banks buying U.S. Treasury bonds even if the yield near historical low?
Why are foreign central banks buying U.S. Treasury bonds even if the yield near historical low?
a) What are the reasons that make banks wanting to keep capital? What are the reasons...
a) What are the reasons that make banks wanting to keep capital? What are the reasons for banks to avoid keeping too much capital? b) What are off-balance-sheet activities? Why do banks engage in them? Explain how off-balance-sheet activities can contribute to the risk of the bank
1.  T-bill yield a. Determine how the annualized yield of a T-bill would be affected if the...
1.  T-bill yield a. Determine how the annualized yield of a T-bill would be affected if the purchase price is lower. Explain the logic of this relationship. b. Determine how the annualized yield of a T-bill would be affected if the selling price is lower. Explain the logic of this relationship. c. Determine how the annualized yield of a T-bill would be affected if the number of days is shorter, holding the purchase price and selling price constant. Explain the logic...
I know the bond yield increase the bond price decrease what is the relationship between the...
I know the bond yield increase the bond price decrease what is the relationship between the bond price and cost of fund? If i'm a liability manager. if I forecast the short term yield goes up and mid, long -term yield decline. what should i do? if I forecast all term will decline what should I do? why?
a4). How is interest rate determined? and Why do interest rates vary among countries ? (200...
a4). How is interest rate determined? and Why do interest rates vary among countries ? (200 words), NO HANDWRITTEN ANS please
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT