1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ede4ka [16]
2 years ago
8

What is the yield on a 10-year zero-coupon bond with a par value of $1,000 if it is purchased for $490?

Business
1 answer:
Mademuasel [1]2 years ago
5 0

3.11% is the yield on a 10-year zero-coupon bond with a par value of $1,000 if it is purchased for $490.

<h3>What is zero-coupon bond?</h3>

Bonds with zero coupons do not accrue interest during their entire lifespan. Rather, buyers of zero coupon bonds pay a significant discount over the bond's face value, which is the sum they will be paid when the bond "matures" or becomes due.

Bonds with no coupon typically have lengthy maturity dates; many take ten, fifteen, or even more years to reach their final maturity. These lengthy maturity dates enable a shareholder to budget for a long-term objective, like paying for a child's college tuition. A small amount of money that will grow over many years can be put up by an investor with the deep discount.

Zero coupon bonds of various types, issued by a variety of issuers, are available for purchase by investors in the secondary markets.

To learn more about zero-coupon bond from the link:

brainly.com/question/28487377

#SPJ4

You might be interested in
Which answer is not a cost to the investor that is included in the calculation of an investment's interest rate
jeyben [28]

Answer:

Risk of a bad investment

Explanation:

When an investor is calculating an investment's interest rate, he/she must include all brokerage commissions and fees , inflation rate (interest rate must exceed the inflation rate) and the investor's opportunity cost.

Investors are risk adverse, which means that a risky investment should yield a higher return. That could be considered a rational investment rule, but it is not included in the calculation of the interest rate.

4 0
3 years ago
I need help somebody!!!!!!
Lisa [10]
Your grammar is incorrect. It is “somebody help me”
8 0
3 years ago
Read 2 more answers
15 POINTS-!-!-!<br><br>Inflation increases if people spend less or more?
Anarel [89]
Inflation is an increase in prices so the answer would be more
8 0
3 years ago
Read 2 more answers
Which of the following positions refers to a functional manager
lbvjy [14]
The where’s the picture !!
5 0
3 years ago
Read 2 more answers
The IMC channel that has received the greatest increase in aggregate spending recently is ________, or marketing that communicat
wariber [46]

The IMC channel that has received the greatest increase in aggregate spending recently is direct marketing  or marketing that communicates directly with target customers to gener­ate a response or transaction.

<u>Explanation: </u>

Direct Marketing is a promotional strategy based on the distribution to potential customers of a marketing strategy.  

The Systems of distribution used include mail, online and texting. Direct marketing is named because it removes intermediaries, like publicity media, in particular.

Direct marketing focuses instead of media advertising on delivery to individual consumers.   In much direct marketing, the call to action is a common factor.   It is easier to quantify than media advertising that direct marketing is successful.

In a number of direct marketing, the call for action is a special element. You are instructed to respond immediately to the request through a free telephone number, a reply card or a reference in the email advertisement. The recipient must also access the letter. A positive measure of a future purchase is any reply. Personal advertising is often linked to as ads for direct responses.

4 0
4 years ago
Other questions:
  • An entity has failed to provide documentation for a newly acquired material asset and informs its auditors that the documentatio
    11·1 answer
  • ​O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the
    6·1 answer
  • Two investment advisers are comparing performance. One averaged a 19% rate of return and the other a 16% rate of return. However
    6·1 answer
  • Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and
    15·1 answer
  • Lisa Smith decided to start her CPA practice as a professional corporation, Smith CPA, PC. The corporation purchased an office b
    11·1 answer
  • 5. OPEC successfully raised the world price of oil in the 1970s and early 1980s, primarily due to:a. an inelastic demand for oil
    15·1 answer
  • In the context of intergroup conflict, managers should encourage social interactions across groups so that:
    12·1 answer
  • Explain two sector model with saving and investment.​
    12·1 answer
  • During the month of July, Falcon Industries has cash receipts of $2,000, $7,000, and $5,500 and makes cash payments of $1,800, $
    15·1 answer
  • cynthia needs to share a financial snapshot of her company, including its current worth. which quickbooks report would be most u
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!