This question has been answered by Pjain on Dec 17, 2012. View Solution
melinda posted a question Dec 17, 2012 at 11:11am
Fixed rate notes and bonds have interesting dynamics that respond to various economic factors affecting the market or fair value of those instruments. There are several potential results from the issuance of fixed rate instruments.

Please discuss and explore the following topics:

Identify and explain what factors may cause a change in the market/fair value of fixed rate notes and bonds?
Explain the accounting treatments for notes and bonds when issued?
For this discussion focus on the technical/fundamental factors that are going to affect market or fair value, not the indirect impact of macro factors such as economy or demand.

answered the question Dec 17, 2012 at 11:23pm
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Solution:In the financial market there are various factors which affects the current market value of the
fixed rate notes and bonds. All fixed rate bearing securities are dynamic in nature and got...