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Please help What is a junk bond? What is the term structure of interest rates? What determines its shape? What is the Treasury yield curve?
Please help
What is a junk bond?
What is the term structure of interest rates? What determines its shape?
What is the Treasury yield curve?
What six components make up a bonds yield?
AaBbCcDdE AaBbCcDdEe AaBbCcD mal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emp.. Emphas Investors Turn Finicky on Corporate Bonds High-grade corporate issuance is up, but for lower-rated firms, it has been a different story Bond-market turbulence in 2016 is widening the gap between corporate haves and have-nots, a dynamic that threatens to weaken the U.S. economic recovery by raising financing costs for lower-rated firms. The wealthiest companies have hardly missed a beat even as investors have retreated from risk and economic numbers have softened. Investors bought $12 billion in bonds Monday from triple- A-rated Exxon Mobil Corp., and Anheuser-Busch InBsy NV andApple Inc. also have completed blockbuster deals this year High-grade corporate issuance during the first two months of the year is up from the same period a year ago, when highly rated firms sold the most new bonds on record for the fourth year in a row, according to Securities Industry and Financial Markets Association data. But for lower-rated firms, it has been a different story. U.S. junk-bond issuance had its slowest start to the year since 2009, according to Dcalogic, and firms that have managed to sell bonds are paying a hefty price. Software firm Solera Holdings Inc. on Monday sold S1.7 billion of junk bonds to finance its buyout, after reducing the sale from a planned $2 billion. The firm also increased its interest rate and made several investor-friendly covenant changes, according to S&P Global Market Intelligence The shift shows bond investors are getting pickier, focusing on low-risk bonds that are easy to trade. What's in: highly rated debt from the safest issuers and bonds from companies expected to be resilient in a slower economy. What's out: the energy sector, bonds from companies seen as needing a growing economy to thrive and bonds with longer maturitiesStep by Step Solution
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