What Is Strategy Implementation

question 29

Short Answer

What is strategy implementation?

Calculate yield-to-maturity and current yield for different bonds.

Understand the concepts of bond pricing, including factors influencing bond prices.

Describe the concept and strategies of bond investment, including bond laddering.

Explain the significance of bond maturity dates and their impact on bond investments.

---

Definitions:

Interest Rate

A cost, depicted as a percent of the original amount, that a lender demands from a borrower for the right to use resources.

Stated Rate

The interest rate declared on a financial instrument, such as a bond or a loan, which is fixed and does not change over the life of the instrument.

Term

In finance, it refers to the period of time until a loan matures; in a broader sense, it can describe any specific duration or the definition of a concept or agreement.

Receivable

Money owed to a company by its customers or clients for goods or services delivered or used but not yet paid for.