Business

Bond valuation: It is a technique for determining the theoretical fair value of a particular bond. A bond generally provides a fixed stream of semiannual…

Yield to Call: The decision to call (or to refund) the issue is the effect of a potential call on a bond’s expected rate of…

Yield to Maturity: The yield to maturity (YTM) is that discount rate which causes the present value of the promised payment stream to equal the…

Bond is called a “Fixed Income Securities” An investment that provides a return in the form of fixed periodic payments and the eventual return of…

Valuation The process of determining the value of an asset or company is called valuation. Valuations can be done on assets (investments in marketable securities…

The uncertainty of profit is called business risk. There are many reasons for business risk. Such as – strike, labor dissatisfaction change of government policy.…

Investors rarely place their entire wealth into a single asset or investment. Rather, they contrast a portfolio. A portfolio is a combination of two or…

The capital asset pricing model (CAPM) provides a formula that calculates the expected return on a security based on its level of risk. The formula…

Efficient Frontier The efficient frontier represents that set of portfolios that have the maximum rate of return for every given level of risk, or the…

Risk Premium: According to Beasley and Brigham, “The portion of the expected return that can be attributed to the additional risk of an investment it…