What is a yield curve? What does it mean when the yield curve is inverted?

Q: What is nonconstant growth model?

A: Definition: The dividend paid to the stockholder is varying continuously at the higher side. The…

Q: What are the optimal prices and profits for pure bundling.

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: What does the volatility value represents?

A: Volatility for a given product or market index is a factual proportion of the scattering of profits.…

Q: How can we find Yield to maturity?

A: Yield to maturity (YTM) is the foreseen absolute profit for a bond if the bond holds until due or…

Q: What is the marginal rate of return? How is it calculated?

A: Answer: Marginal rate of return can be defined as the return obtained or received by means of…

Q: The yield curve usually has a positive slope.  Why?

A: Yield Curve- is  plotted on a graph on which yield of a bond or securities are plotted on the Y-axis…

Q: what is price elasticity

A: Explaination:-   The price elasticity of desire is an economic statistic that measures the idea of…

Q: What is market model?

A: A market model is a numerical portrayal of the exchanges among different members, financial powers,…

Q: An upward-sloping yield curve

A: An upward sloping yield curve: may reflect the confounding of the liquidity premium with interest…

Q: Factors that Affect Yield to Maturity

A: A bond's yield to maturity depends basically on its present value, coupon rate and the time to…

Q: What causes the marginal rate of return to change over time?

A: Introduction: Marginal rate of return can be defined as the return attained or earned by holding a…

Q: on. What is the maximum profit possible?

A: In the given question, we have to compute maximum possible profit out of the given availability of…

Q: Present and Explain the theories of the Yield Curve?

A: The yield curve is a curve that shows the relationship between the interest rates and the different…

Q: Breifly explain what "playing the yield curve" means.

A: The yield on a bond refers to the annual return that one gets as a bond matures. A yield curve is a…

Q: Explain how did it get the NPV, the Economic Value Added (EVA), and the Market Value Added (MVA)

A: Capital budgeting is a process that is undertaken by an organization or business to evaluate…

Q: b. What i

A: Given as,

Q: What is market value ratios?

A: Introduction: Market value ratios help to assess the economic position of publicly dealt…

Q: Whatis a yield curve?

A: It is the percentage of the securities at which the return is provided by the company to its…

Q: What are the optimal prices and profits for selling the goods seperately?

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: What is normal yield curve?

A: The yield curve is a curve that shows the many yields to maturity and interest rates. The curve also…

Q: What is the relationship between the price, coupon rate  and market yield?

A: The coupon rate is the bond's interest rate. The coupon rate is not the same as the market interest…

Q: What is inverted (abnormal) yield curve?

A: An Yield curve, in general, is the plot of Interest rates versus the time to maturity of a Bond. It…

Q: Explain how cost-of-carry is a factor in forward curve prices.

A: Cost of carry is the costs of holding the certain position in the market or in other words it is the…

Q: Which of the following is consistent with a steeply upwardly sloping yield curve?a. Monetary policy…

A: Monetary policy: The monetary policies are utilized by government to go-slow economic growth by…

Q: Could the current yield exceed the total return?

A: A financial instrument that has a fixed income and also helps a company to raise funds for business…

Q: Explain Yield Enhancement?

A: A "yield enhancement technique" is an investment approach that includes purchasing options at the…

Q: What are the measures of investment worth based on yield? What are they called?

A: Investment worth based on yield means that an investor is expecting certain income on an investment…

Q: Explain how a yield curve is constructed.

A: Yield curve is referred to as the line, which used to plot yields that are interest rates of the…

Q: What is market efficiency?

A: Market Efficiency term is taken from a paper written by Eugena Fama in 18970. Fama acknowledges that…

Q: What are the Relationship between Yield and Time?

A: Yield refers to the measurement of returns of an investment in a period of time. It measures the…

Q: How do you calculate yield to maturity?

A: The yield to maturity is nothing but the interest rate of a bond. It can also be termed as the…

Q: What is meant by investment yields?

A: Investment Yield:  It defined as Earnings or income which is earned on investment over the period of…

Q: a. Plot a yield curve based on these data. b. What type of yield curve is shown? c. What information…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: inverted

A: An inverted yield curve is a curve which shows that the company's long term debt instruments have a…

Q: What is market Value added? What is economic value added? What is the difference between what each…

A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…

Q: Explain the difference between the yield to maturity and the yieldto call.

A: Bonds are the fixed income securities issued by the government or companies to raise funds from the…

Q: Use the ‘Liquidity Premium Theory’ to explain the shape of the yield curve.

A: Liquidity Premium Theory states that investors will require a higher rate of return(interest rate or…

Q: Explain an upward sloping yield curve using the pure expectation theory.

A: Pure expectation theory: Pure expectation theory states that expected future spot rates will be…

Q: Explain with example the Yield to Maturity?

A: A bond is a financial instrument that is issued by the government and the corporate to raise the…

Q: What is the difference between yield to maturity and current yield? Explain

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…