Podcast
Questions and Answers
What will happen to the value of a bond when interest rates increase?
What will happen to the value of a bond when interest rates increase?
What is seniority risk related to in corporate debt?
What is seniority risk related to in corporate debt?
What risk is associated with the ease of converting a security into cash?
What risk is associated with the ease of converting a security into cash?
What happens to bond prices when interest rates fall?
What happens to bond prices when interest rates fall?
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Which type of bond risk is associated with adverse exchange rate movements?
Which type of bond risk is associated with adverse exchange rate movements?
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What is the primary reason why turmoil occurred in government bond markets following the last financial crisis?
What is the primary reason why turmoil occurred in government bond markets following the last financial crisis?
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What is the main concern for bondholders in a rising interest rate environment?
What is the main concern for bondholders in a rising interest rate environment?
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How does a general upward movement in interest rates affect bond prices?
How does a general upward movement in interest rates affect bond prices?
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Why is price risk a significant concern for bondholders?
Why is price risk a significant concern for bondholders?
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What happens to the value of a bond when interest rates rise substantially?
What happens to the value of a bond when interest rates rise substantially?
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What is a sinking fund requirement associated with in corporate bonds?
What is a sinking fund requirement associated with in corporate bonds?
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How do puttable bonds differ from callable bonds?
How do puttable bonds differ from callable bonds?
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What is the primary disadvantage of a call provision to investors?
What is the primary disadvantage of a call provision to investors?
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Why are puttable bonds considered attractive to investors?
Why are puttable bonds considered attractive to investors?
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How does a call provision benefit the issuer?
How does a call provision benefit the issuer?
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What is one of the attractions for investors holding convertible bonds?
What is one of the attractions for investors holding convertible bonds?
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How does the potential dilution of current shareholder interests affect the attractiveness of convertible bonds?
How does the potential dilution of current shareholder interests affect the attractiveness of convertible bonds?
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What financial benefit does a company derive from issuing convertible bonds?
What financial benefit does a company derive from issuing convertible bonds?
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In what scenario might a bondholder holding an unsecured convertible bond still face a loss?
In what scenario might a bondholder holding an unsecured convertible bond still face a loss?
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Why are investors willing to pay a higher price for convertible bonds compared to non-convertible ones?
Why are investors willing to pay a higher price for convertible bonds compared to non-convertible ones?
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Why would a logical investor be interested in purchasing a Zero Coupon Bond (ZCB) that pays no interest?
Why would a logical investor be interested in purchasing a Zero Coupon Bond (ZCB) that pays no interest?
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What distinguishes Zero Coupon Bonds (ZCBs) from other types of bonds in terms of how returns are generated?
What distinguishes Zero Coupon Bonds (ZCBs) from other types of bonds in terms of how returns are generated?
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How does the price paid for a Zero Coupon Bond (ZCB) relate to its par value redemption?
How does the price paid for a Zero Coupon Bond (ZCB) relate to its par value redemption?
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What differentiates the return on investment from a Zero Coupon Bond (ZCB) compared to a traditional bond?
What differentiates the return on investment from a Zero Coupon Bond (ZCB) compared to a traditional bond?
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What aspect of Zero Coupon Bonds (ZCBs) makes them potentially attractive for certain investors?
What aspect of Zero Coupon Bonds (ZCBs) makes them potentially attractive for certain investors?
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What is the main purpose of calculating the yield to maturity for a bond?
What is the main purpose of calculating the yield to maturity for a bond?
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In what scenario would the yield to maturity be less than the flat yield for a bond?
In what scenario would the yield to maturity be less than the flat yield for a bond?
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What does the yield to maturity (YTM) offer that makes it a more comprehensive measure for comparing bond returns?
What does the yield to maturity (YTM) offer that makes it a more comprehensive measure for comparing bond returns?
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Why would the yield to maturity be higher than the flat yield for a bond priced below its par value?
Why would the yield to maturity be higher than the flat yield for a bond priced below its par value?
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What effect does holding a bond until its maturity have on both the flat yield and the yield to maturity?
What effect does holding a bond until its maturity have on both the flat yield and the yield to maturity?
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