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2 years ago

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.

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$Paybackperiod=Intial investment / Net annual cash inflow$

project's payback period is 4.5 years.

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2 years ago

According to ______________, stock prices react instantaneously, completely and accurately to all publicly available information

Lelu [443]

Answer:

Theory of Efficient markets

Explanation:

According to this theory stock prices react instantaneously to new information

4 0

3 years ago

A company's chart of accounts is: a detailed list of the accounts that make up the five financial statement elements. the set of

polet [3.4K]

Answer:

A detailed list of the accounts that make up the five financial statement elements.

Explanation:

The company's chart of accounts is the listing of all the accounts that the company has included as part of the five financial statement elements during a specific period of time.

The five financial statement elements are: assets, liabilities, equity (part of the balance sheet), expenses and revenues (part of the income statement).

Examples of accounts that can be part of a firm's chart of accounts are: land (asset), cash (asset), notes payable (liabilities), outstanding stock (equity), operating expenses (expenses), and sales revenue (revenues).

The chart of accounts can differ greatly from company to company simply because companies engage in vastly different economic activities.

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3 years ago

41 had investments in stock funds 91 had investments in bond funds 60 had investments in money market funds 47 had investments i

Evgesh-ka [11]

Answer:

The answer is "22 and 80"

Explanation:

The important part is to understand how the Venn diagram can assist you with your numbers.

You cannot draw this one, and you can create one as follows:

the 3 sorts of funding, then make your way back thru the list

this is the figure in the center - "22 had all 3 funds"

where the four dimensions meet. In the next three statements, you'll be able to:

Work out where 2 circles connect (remember all 22 of those circles are connected).

That's because the numerals have been already placed throughout the center zone.

bond & money market solenoid valves at a ratio of $36-22=14$

$36-22=14$ as to where the corporate market and the term deposit intersect

$47-22=25$ as to where equities and bonds connect You can use the top 3 statements to work out all the values in a table.

(Set of) just one circle (circle)

for stock the number is $141-(22+14+25)=80$

for the bond, the number is $91-(22+14+25)=30$

for the money market, the number is $60-(22+14+14)=10$

(universal set) Lastly, get the number that goes into the rectangle.

$\to 200-(80+30+10+25+14+14+22)=5$

$a) 22\\b) 80$

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3 years ago

if the required reserve ratio is 10 percent the banking system currently has excess reserves equal to

prisoha [69]

Answer:

Experts are tested by Chegg as specialists in their subject area. We review their content and use your feedback to keep the quality high. Transcribed image text: If the required reserve ratio is 10 percent, the banking system currently has excess reserves equal to: $10 billion.

Explanation:

5 0

3 years ago