bonds

  1. I

    Which bond should I pick if both have the same YTM, tenor, credit risk? One has a higher coupon rate than the other.

    Suppose I am presented 2 bonds YTM Coupon A 5% 6% B 5% 4% Given that both bonds have the same YTM, tenor, credit risk would either bond be better than another? A couple of things come to mind. In particular that the Macaulay duration (how fast an investor gets their money back) of...
  2. K

    GARP T3 Chapter 16 Question 16.16

    Question 16.16: The six-month, 12-month, 18-month, and 24-month zero rates are 5%, 5.5%, 6%, and 6.5% (all measured with semi-annual compounding) respectively. What is the two-year par yield for a bond paying coupons every six months? For the par yield, I keep getting 6.41%, and A= 3.7465...
  3. O

    Bond Accrued Interest

    Hi All, when selling bond do i need to discount the my Accrued interest amount.(Assuming Bond Pays coupon annually & sales happen in after six month, why buyer will pay me the accrued interest amount Full, in advance six month) Thanks, Om
  4. L

    Help [Bootstrapping]

    I am so sorry to bother you but I really need help. Note: I am new to bonds, interest rates, forward rates .. etc. In many examples ( for instance in Hull's book) I see something like this: TTM Coupon Price 0.25 0 97.5 0.50 0 94.9 1.00 0...
  5. Nicole Seaman

    P1.T3.413. Bonds (basic)

    Concept: These on-line quiz questions are not specifically linked to AIMs, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical AIM-by-AIM question such that the intended difficulty level is nearer to an actual...
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