Corporate Bonds Wiki

August 28th, 2005 |

Author: admin

corporate bonds wiki
Question: Financial instruments and markets?

Before investing in fixed income instruments like Corporate Bonds, commercial paper, Convertible Bonds,what determines the price of these instruments? I read that it is affected by interest, inflation, default, liquidity, maturity, re investment risks.But cant seem to micro- in why each of these factors affect the price,wikipedia doesnt have a link for each of this factors.(only for liquidity).

In addition, a money market instrument is less risky than a capital market's because it is short term,less than a year. Capital market is more than a year.More exposed to inflation, fluctuating risks factors.
Am I right to say that the yield on money market is generally lower than cap market's then?In addition,is there any other rationale why capital market is said to be more risky than money market? Im googling lotsa stuff,but its all pure commercial,wiki is good,but doesnt give me these info.
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Answer: Bonds of all kinds are most affected by interest rates and credit quality.

So what exactly is your question?

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