Examlex

Solved

Describe Two Bond Characteristics That Increase a Bond's Price Sensitivity

question 20

Essay

Describe two bond characteristics that increase a bond's price sensitivity to changes in market rates of interest.


Definitions:

Private Offering

The sale of securities or investment stakes not offered through a public exchange, typically to a small number of chosen investors.

Standby Underwriting

A commitment by an underwriter to purchase any unsubscribed shares in a public offering, ensuring the issuer raises the full intended capital.

Entire Offering

The total number of shares or securities a company makes available for sale in a public offering.

Rights Offer

A financial offering in which shareholders are given the right to purchase additional shares directly from the company at a discount before the new shares are offered to the public.

Related Questions