Write short notes on following: a) Yield to call b) Instruments of Monetary policy c) nominal and real interest rate d) Efficient Portfolio Frontier
a) Yield to Call (YTC) Yield to Call is the return an investor expects to earn if a bond is called (redeemed) by the issuer before its maturity date. Many corporate and municipal bonds are callable, meaning the issuer can repay the bond before it matures, usually after a lock-in period. Formula: YTC = [C […]