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RoseWind [281]
2 years ago
15

The rate of return required by investors in the market for owning a bond is called the:_______

Business
1 answer:
VashaNatasha [74]2 years ago
6 0

The rate of return required by investors in the market for owning a bond is called the <u>Yield to </u><u>maturity</u>

A bond's coupon rate is the rate it pays each year, and yield is the return it makes. A bond's coupon is expressed as a percentage of its face value. Face value is simply the face value of the bond or the value of the bond as quoted by the issuer.

A bond's current yield is the annual income from the investment, including interest and dividend payments, divided by the security's current price. Yield to maturity (YTM) is the expected total return from holding a bond to maturity.

The current yield is the annual rate of return on investment (interest or dividend) divided by the security's current price. This indicator looks at the current price of a bond rather than its face value.

Learn more about maturity here brainly.com/question/26376004

#SPJ4

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Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and y
11111nata11111 [884]

Answer: 1. real GDP declined.

Explanation:

If labor productivity fell yet the workforce did not increase, that means that for Years 1 and 2, workers were producing less than they were producing before because the same number of people were producing.

This means that the amount of goods produced in the country would reduce and therefore GDP would reduce as well as GDP is the amount of goods and services produced in a country. If labor productivity had fallen yet the work-hours had increased, the increase in worker hours would have made up for the loss of labor productivity.

6 0
2 years ago
One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5 percent, paid semiannually, and a fa
Masja [62]

Answer:

option (C) - 6.11%

Explanation:

Data provided :

Coupon rate one year ago = 6.5% = 0.065

Semiannual coupon rate = \frac{0.065}{2} = 0.0325

Face value = $1,000

Present market yield = 7.2% = 0.072

Semiannual Present market yield, r = \frac{0.072}{2} = 0.036

Now,

With semiannual coupon rate bond price one year ago, C

= 0.0325 × $1,000

= $32.5

Total period in 15 years = 15 year - 1 year = 14 year

or

n = 14 × 2 = 28 semiannual periods

Therefore,

The present value = C\times[\frac{(1-(1+r)^{-n})}{r}]+FV(1+r)^{-n}

= \$32.5\times[\frac{(1-(1+0.036)^{-28})}{0.036}]+\$1,000\times(1+0.036)^{-28}

or

= $32.5 × 17.4591 + $1,000 × 0.37147

= $567.42 + $371.47

= $938.89

Hence,

The percent change in bond price = \frac{\textup{Final price - Initial price}}{\textup{Initial price}}\times100\%

= \frac{\textup{938.89-1,000}}{\textup{1,000}}

= - 6.11%

therefore,

the correct answer is option (C) - 6.11%

4 0
3 years ago
It's an opportunity to give a good impression or introduction of yourself. It can capture the attention of a potential employer
GalinKa [24]

Answer:

Period

Explanation:

6 0
2 years ago
The more conservative a firm's management is, the higher its total debt to total capital ratio [measured as (Short-term debt Lon
PtichkaEL [24]

Answer:

False

Explanation:

The conservative approach is that the firm has greater level of working capital investment than the competitor or industry average. So to fund the higher level of working capital the company has a set of policy and targets related to the level of debt level which means the company will not be willing to borrow further money if their borrowing exceeds the set limit or benchmark. They might use the equity instruments (Preferred stock or Common equity) to fund the higher level of working capital.

So their no absolute argument whether the denominator will increase or the nominator will increase in the Total debt to capital ratio. Hence the statement is false.

8 0
3 years ago
Henson company applies overhead on the basis of 120% of direct labor cost. job no. 190 is charged with $120,000 of direct materi
Marizza181 [45]
Total manufacturing costs=direct material+direct labor+manufacturing overhead

Calculate direct labor
Let direct labor be x
120%=1.2
1.2x=180000
Divide both sides by 1.2
X=180,000÷1.2
X=150,000 direct labor

Total manufacturing costs=
120,000+150,000+180,000
=450,000...answer

Hope it helps!
5 0
2 years ago
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