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MariettaO [177]
2 years ago
10

An investor buys a $100,000, 10% corporate bond maturing in 2032 for $125,000. The bond is callable starting in the year 2022. W

hat is the most appropriate measure for calculating yield
Business
1 answer:
bogdanovich [222]2 years ago
7 0

The best measure for calculating yield that the investor can use for the bond is C. Yield to Call.

<h3>What is Yield to Call?</h3>

The bond is a callable bond which means that there is a chance the issuer will call it if interest rates drop too low.

The fact that the bond was purchased at the premium (price higher than par) means that interest rates are low so there is a good chance of the bond being called.

The investor should therefore use the yield to call which would take into account the possibility of the bond being called.

Options for this question include:

A. Total Return

B. Current Yield

C. Yield to Call

D. Yield to Maturity

Find out more on callable bonds at brainly.com/question/24129882.

#SPJ1

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Which type of financial institution is owned by its depositors and borrowers?
fredd [130]
"credit unions" are owned by the people who deposit and are loaned money
3 0
3 years ago
Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the
inn [45]

Answer:

Letter B is correct. <em>Lead Users</em>.

Explanation:

Term developed by prof. Eric von Hippel, Lead Users are those users who are able to transform, adapt and modify a company's product or service for their own benefit, as they face the same market needs a while before regular users.

For Prof Eric von Hippel, there are four steps in developing Lead Users:

  1. Preparation,
  2. Needs and Trends Identification,
  3. Lead Users Identification, and
  4. Concept Design.

The premise is that the Lead Users method is effective in identifying innovation and product trends that need to be developed for a market for your needs.

3 0
3 years ago
Which of the following is true about duration and modified duration?
My name is Ann [436]

Answer:

The truth about Macaulay Duration and Modified Duration is:

d. All are true.

Explanation:

Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.

On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.

4 0
3 years ago
Why would a producer decide to produce in a competitive market in which she will earn zero profit in the long run? Choose one: A
zhenek [66]

Answer:

Option A : Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost).

Explanation:

Perfectly Competitive Market

This is simply a market the market participants are said to be price takers that is no consumption decisions by individual consumers and no production decisions by individual producers can be able to affect the market price of a good.

Perfectly Competitive Industry

This is simply an industry where producers are said to be price takers.

Explicit Costs

These are costs that are simply known as "out-of-pocket" costs or in accounting costs. They are an individual's fixed and variable costs of doing business.

Implicit Costs

These are costs that do not partains to monetary payment as they are the opportunity costs of doing business.

It is said that at zero profit, the revenue covers all the costs, including the implicit ones. The fact that her implicit costs are covered shows that no outside option or opportunity that is superior to the zero economic profit option is chosened.

4 0
3 years ago
Select the correct answer.
Mademuasel [1]

Answer:

C.earning college credits in high school.

Explanation:

The other answers are all negative and in the question it says ''a benefit''.

Hope this helps! Please mark brainliest!

3 0
3 years ago
Read 2 more answers
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