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Anvisha [2.4K]
2 years ago
5

Differentiate between a bond coupon rate and the market rate of interest.

Business
1 answer:
Arlecino [84]2 years ago
5 0

The differences between a bond coupon rate and the market rate of interest are:

  • A coupon rate is a fixed rate of return attached to the face value of the bond paid to the purchaser from the seller, while the market interest rate can change dramatically throughout the lifespan of the bond.
  • The coupon rate is calculated on the face value of the bond, which is being invested. The interest rate is calculated considering the basis of the riskiness of lending the amount to the borrower. The coupon rate is decided by the issuer of the bonds to the purchaser. The interest rate is decided by the lender.

A bond is a debt security, similar to an IOU. debtors problem bonds to raise money from investors inclined to lend them money for a certain amount of time. while you buy a bond, you are lending to the provider, which may be a government, municipality, or enterprise.

Bonds are issued with the aid of governments and agencies after they want to elevate money. by means of shopping for a bond, you are giving the provider a mortgage, and they agree to pay you again the face fee of the loan on a particular date and to pay you periodic interest payments along the way, generally two times a year.

Learn more about bond here: brainly.com/question/25965295

#SPJ4

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Answer:

a. 8%

Explanation:

Expected Return = [(Return*Probability)+(Return*Probability)+(Return*Probability) * 100%]

Expected Return = [{(15%*0.2)+(10%*0.2)+(5%*0.6)} * 100]%

Expected Return = [{(0.15*0.2)+(0.1*0.2)+(0.05*0.6)} * 100]%

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Expected Return = [{0.08 * 100}]%

Expected Return = 8%

So, Liqin's expected return for fixing up and selling the Corvette is 8%.

7 0
3 years ago
A stores new environmental policy (PLS HELP ASAP)
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The policy is not practical because it is not enforceable. Lots of shops or businesses will not practice this as it will scare customers away.

<h3>Why is the policy not fair?</h3>

The policy is not fair because throw away paper is recyclable while plastic bags are not. Hence people who use paper should not be charged as much as those who use plastic bags, if at all.

<h3>What is the saving due if a person brings their own container to bag their groceries?</h3>

They most likely wills save 5% on every purchase made.

<h3>Why are environmental policies important?</h3>

The goal of environmental law is to safeguard the

  • land,
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Infractions of these rules result in a variety of penalties, including fines, community service, and, in severe circumstances, jail time.

Without environmental regulations, the government would be unable to penalize people who harm the environment.

Learn more about environmental policies:

brainly.com/question/3316812

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3 0
2 years ago
The approved detail design resulting from the __________ serves as a basis for making the decision to begin production. Systems
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Answer: Critical Design Review

Explanation:

A Critical Design Review is referred to as a review that's fine in order o ensure that a system can be able to move into fabrication, and test and also ensure that the stated performance requirements are met.

The approved detail design resulting from the critical design review serves as a basis for making the decision to begin production.

3 0
3 years ago
Holding all other things constant, if ramen noodles are an inferior good to Vanessa, then as her income increases, her demand cu
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Answer:

:A) will shift left.

Explanation:

An inferior good is a good whose demand falls when income increases and demand increases when income decreases.

As Vanessas income increases, her demand for ramen noodles would fall. This would lead to a decrease in demand for ramen noodles and her demand curve would shift to the left.

I hope my answer helps you

6 0
3 years ago
Which of the following is a fundamental goal of CRM systems? a. To produce and deliver a product or service at the time the cust
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Answer:

The correct answer is letter "C": To manage and track customer interactions.

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Customer Relationship Management (CRM) is a managerial approach that uses Information Technology (IT) to store, analyze, and use customer information to find out trends in consumption and generate a better relationship with clients. CRM is a key component in the pursuit of engaging customers with a brand that allows corporations to maintain steady sales levels or increase it.

CRM allows sharing and maximizing the knowledge of clients to understand their needs and anticipate them.

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