Clearly explain the following types of risk that effect Bond: i) Interest rate risk ii) Default risk premium iii) Expected future inflation risk b) Two
Clearly explain the following types of risk that effect Bond: i) Interest rate risk ii) Default risk premium
iii) Expected future inflation risk
b) Two bonds identical but for coupon payment, the lower-coupon bond or the higher-coupon bond are riskier for the following risks i) Interest rate risk ii) Default risk premium iii) Expected future inflation risk, clearly explain.
c) Explain what is Holding Period Yield, when we talk about Bounds and Stocks.
d) When talking about Stock, explain Growth opportunity? Explain why its important.
e) How do we value stock that dont pay dividend, clearly explai
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