Question
Bond Market is determined by interest rate as coupon payment is based on the ability of firm are willing to pay their bondholder, but on
Bond Market is determined by interest rate as coupon payment is based on the ability of firm are willing to pay their bondholder, but on the other hand Yield to maturity is also affecting supply and demand of market
A. Why is the bond market so sensitive to interest rates?
B. Why do interest rate change and its effect regarding COVID-19 situation?
C. Do a search to find a corporate bond issue where the company has either defaulted on the payments or called back the bonds. Define what was the reason(s) for the company to either default on payments or call back the bonds?
D. How would you compare the investment in bonds vs. stocks? Which one would you prefer?
E. Is it a good strategy to have a combination of stocks and bonds in your portfolio?
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