What are the different approaches used to estimate the duration of high-yield corporate bonds?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

See More Books

Question Posted: Aug 22, 2015 07:43 AM

See More Questions

The responsibility for receiving the proper amount of interest falls on the bondholder most heavily in the case of a serial bonds b registered bonds c term bonds d coupon bonds
What are the different approaches to choosing an appropriate forecasting model?
What are the different approaches retailers can use to identify customers with their transactions? What are the advantages and disadvantages of each approach?
Discuss types of media used in the design of a network given different situations. Namely: What would you do for a college campus with hundreds of staff users and students? How would they connect...
Sigall and Ostrov (1975) did an experiment to assess whether the physical attractiveness of a defendant on trial for a crime had an effect on the severity of the sentence given in mock jury trials....
Does an increase in the receivables turnover ratio generally indicate faster or slower collection of receivables? Explain. LO1
9. Communications. Was the team kept informed of the project status and potential problems in a timely manner? Was the project environment conducive to open, honest, and timely communications? Were...
As controller of a widely held public company, you are concerned with making the best decisions for the stockholders. At the end of its first year of operations, you are faced with the choice of...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,000 units): Direct materials $174,300 Direct labor 221,400 Variable factory...
You are the operations manager for a manufacturing company that makes a medical device. Business has been growing tremendously and after exhaustive research you discover new technology that has...
Answer the below questions. (a) Corporate bond prices have interest-rate exposure and equity exposure. Why? (b) What type of corporate bond is more likely to have greater equity exposure,...
(a) What is meant by the empirical duration of a corporate bond? (b) How is the empirical duration of a corporate bond estimated?
Compensation relating to a director that is paid to the directors firm, rather than to the director directly: (a) Can be ignored. (b) Should be reported without mentioning the director's firm. (c)...
GATE 2024-EE Question
GATE 2024-EE Question
GATE 2024-EE Question
What is Netduino?
What is Appolonius theorem?
Dakota Taylor, a production line worker at Yani Yogurt, spilled an entire vat of milk. The milk must be discarded rather than used in yogurt. Which variance is directly impacted? a. Direct materials...
Draw the major product for each of the following reactions: (a) (b) (c) 1) 9-BBN 2) H2O2, NaOH 1) Disiamylborane 2) H20, NaOH
Two independent random samples of army and marine recruits are selected, and the time in minutes it takes each recruit to complete an obstacle course is recorded, as shown in the table. At...
Percentage of sales models usually assume that costs, fixed assets, and working capital all increase at the same rate as sales. When do you think that these assumptions do not make sense? Would you...
What are the possible choices of balancing items when using a financial planning model? Discuss whether some are generally preferable to others.
How would Executive Fruit's financial model change if the dividend payout ratio were cut to 1/3? Use the revised model to generate a new financial plan for 2015 assuming that debt is the balancing...
why would an auditor want to complete dual-purpose tests? what procedure can be put into place to help prevent fraud? List 4 procedures.
Based on the following information, calculate sustainable growth rate for Groot, Inc.: Profit margin= 7.1% Total asset turnover = 1.90 Total debt ratio = .45 Payout ratio = 20% What is the ROA here?
Consider the following: a call option on a stock has strike price $100, premium of $5 and the current price of the underlying stock is $100. If you buy the call option today, what is your holding...

What are the different approaches used to estimate the duration of high-yield corporate bonds?

Question:

Step by Step Answer:

In practice when assigning a duration to the highyield bonds in a portfolio managers have used two approaches 1 A heuristic ruleofthumb that involves ...View the full answer

Bond Markets Analysis and Strategies

Students also viewed these Corporate Finance questions