List the Various Determinants of Bond Yields and Indicate the Type

question 87

Essay

List the various determinants of bond yields and indicate the type of situation that would cause each determinant to increase the yield on a bond.

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Definitions:

Depreciation Expense

Depreciation expense is the charge recognized in each accounting period for the cost of an asset's decline in value due to use or obsolescence over time.

Residual Value

The estimated value of an asset at the end of its useful life, relevant in depreciation calculations and lease contracts.

150%-Declining-Balance

A method of accelerated depreciation which computes depreciation expense at 150% of the straight-line rate.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.