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Anika [276]
2 years ago
8

When the required return is constant and equal to the coupon rate, the price of a bond as it approaches its maturity date will?

Business
1 answer:
sukhopar [10]2 years ago
5 0

When the required return is constant and equal to the coupon rate, the price of a bond as it approaches its maturity date will remain at par.

The interest rate that bond issuers pay on the bond's face value is known as the coupon rate. It is the reoccurring interest rate that bond issuers pay to their buyers. Not the issue price or market value, but the bond's face value (or par value), is used to determine the coupon rate.

A coupon is the interest payment a bondholder receives from the bond's issuing date until its maturity date. Ordinarily, the "coupon rate," which is determined by summing the total annual coupon payments and dividing the result by the bond's face value, is used to characterize coupons.

Learn more about coupon rate here

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Suppose you have the following disposable income and consumption data for an economy, as shown in the table below.
forsale [732]

Answer:

Consumption is a key component in the calculation of GDP and refers to how much money out of disposable income is spent by households on goods (both durable and non-durable) and services.

Disposable income is how much money households have after taxes. Their consumption and spending come from here.

Whatever is not spent is saved. Savings are therefore calculated as;

Savings = Disposable income - Consumption

Savings for the above are therefore,

$20,000 - $22,000 = -$2,000

21,000 - 22,500 = -$1,500

22,000 - 23,000 = -$1,000

23,000 - 23,500 = -$500

24,000 - 24,000 = $0

25,000 - 24,500 = $500

26,000 - 25,000 = $1,000

27,000 - 25,500 = $1,500

28,000 - 26,000 = $2,000

8 0
3 years ago
A generation ago, ketchup was an essential element of every American pantry and salsa was a relatively unknown product. The popu
s344n2d4d5 [400]

Answer:

  • Social

Explanation:

PESTLE analysis is a tool to identify those external factors which influences organization.

P: Political Factors influencing organization's performance.

E: Economical Factors creating hurdles in the way of the organizations.

S: Social Factors account for changed behavior of consumers towards organization.

T: Technological Factors playing it's role in influencing organizational performance.

L: Legal Factors accounting for legal barriers for the organizations.

E: Environmental Factors affecting companies but no one pays attention to it.

  • Salsa's increased popularity is represented by Social Factor: As belief is the most vital element which has effect on consumers decision making a company's growth or loss can be accounted for it. Not just belief the demographics and the attitude of people towards general issues can play their roles as well.
3 0
4 years ago
The FDIC ruled that a company had violated the FTC Act. What penalty can the company expect?
3241004551 [841]

Answer:

b

Explanation:

6 0
3 years ago
Read the following descriptions and identify the type of risk or term being described:
vagabundo [1.1K]

Answer:

Foreign exchange risk

Explanation:

These are the risks that an international financial transaction could accrue because of fluctuations in the currency.

A standard measure of the risk per unit of return and this type of risk relates to fluctuations in exchange rates.

Therefore, according to the following descriptions, the type of risk or term being described is Foreign exchange risk.

7 0
3 years ago
A cable company spends, on average, $ 600 to acquire a customer. Annual maintenance costs per customer are $ 45. Annual record-k
tangare [24]

Answer:

Average customer life value

CLV = 1260

Explanation:

Gross Margin \times\frac{retention}{1+discount-retention} )= CLV

Fis, we will calcualteteh gross margin.

For that we need the revenue:

We will calculate the average revenue per year:

50%  30 dollars per month = 180

40%  50 dollars per month = 240

10%   80 dollars per month =  96

average annual revenue per customer: 516

now we ill calcualte the gross margin:

revenue           516

maintenance   (45)

administrative (30)

gross margin   441

441 \times\frac{0.8}{1+0.08-0.80} )= CLV

CLV = 1260

6 0
4 years ago
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