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viva [34]
2 years ago
7

Assuming the issuer does not default, can capital gains or losses be a component of the holding period return on a zero-coupon b

ond that is sold prior to maturity?
Business
1 answer:
tamaranim1 [39]2 years ago
3 0

Yes, because the bond's yield to maturity may have changed.

Do zero coupon bonds have a yield?

Without accounting for any interest payments, zero-coupon bonds always demonstrate yields to maturity adequate to their normal rates of return. The yield to maturity for zero-coupon bonds is additionally known as the spot rate.

What is the difference between a zero-coupon bond and a coupon bond?

Regular bonds, which also are called coupon bonds, pay interest over the lifetime of the bond and also repay the principal at maturity. A zero-coupon bond doesn't pay interest but instead trades at a deep discount, giving the investor a profit at maturity once they redeem the bond for its full face value.

Advantages Of Zero-Coupon Bond:

The Zero Coupon bonds eliminate the reinvestment risk. Zero-Coupon bonds don't let any periodic coupon payments, and hence a hard and fast interest on Zero Coupon bonds is guaranteed.

Learn more about zero coupon bond :

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Murljashka [212]

Answer:

CReative department?

Explanation:

6 0
3 years ago
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Athena Company provides employee health insurance that costs $14,500 per month. In addition, the company contributes an amount e
erik [133]

Answer:

Explanation:

130500

3 0
3 years ago
Lamar believes that interest rates are going to fall in the near future and remain low for a considerable period of time. she sh
padilas [110]

Lamar should invest in a long-term, fixed rate certificate deposit, if she believes that interest rates are going to fall in the near future and remain low for a considerable period of time.

A long-term CD is generally a CD term between two and five years. Traditionally, long-term CDs have typically offered higher rates than shorter CD terms in exchange for tying up your money for a longer term.

Some institutions provide CD terms of up to 10 years or more, although this isn't as common.

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4 0
1 year ago
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number o
LUCKY_DIMON [66]

Answer:

The answer is $ 218

Explanation:

Solution

Given that:

                       Description                             Amount

                       Direct materials                          $91

                 Direct labor                                       $85

Variable manufacturing overhead                     $7

Fixed manufacturing overhead

( $ 161,000/ 4,600 units)                                    $35

The unit product under absorption costing =  $218

Therefore, the absorption costing unit product cost is $218

6 0
3 years ago
Suppose Carla is a bus driver and she was driving the bus when she suffered a heart attack. As a result, the bus hits another ve
Mariulka [41]

Answer:

Unfortunate Accident

Explanation:

Since the accident was not due to any lack in the driving skills, but as Carla could not function properly, because of Heart Attack, this is not an accident for which Carla could be held liable.

Although Carla was driving, but she could be held liable, as that is because of unfortunate circumstances, not in the hands of Carla, and could not be avoided by the actions of Carla.

Thus, it is termed as Unfortunate Accident.

6 0
3 years ago
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