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Essay

Bonds and their Evaluation

Essay specific features

 

Issue:

Business

 

Written by:

Betty A

 

Date added:

August 8, 2012

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 742

 

Was viewed:

5121 times

 

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Essay content:

It does not have any default risk as it is assumed that the Government will repay the amount on due date. Interest on Treasury bonds is exempt from state and local taxes, though not from federal taxes. The Bond prices may however decline when the interest rate rises. ? Corporate Bonds: they are issued by corporations and carry default risk...
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The Bond prices may however decline when the interest rate rises. ? Corporate Bonds: they are issued by corporations and carry default risk. When a company is in trouble, it may be unable to pay the promised interest and the principal payments. Default risk is also called "credit risk" and the larger the default risk, the higher the interest rate the issuer must pay...
displayed 300 characters

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