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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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Vladimir79 [104]

Task conflict and interpersonal conflict are the two basic categories of intragroup conflict. Relationship conflicts entail challenges pertaining to individual ideas, attitudes, beliefs, and personality qualities, whereas task conflicts are caused by divergent objectives or an inability to satisfy the standards of the group.

Any sort of dispute involving two or more persons is referred to as interpersonal conflict. Contrasted with an intrapersonal conflict, which is an internal conflict with yourself, this is not the same thing. Interpersonal conflict, whether mild or severe, is a typical result of human contact. The conflict in a tale, which serves as the opposing force, typically falls into one of four categories: conflict with one's own nature, conflict with people, confrontation with the environment, or conflict with supernatural forces. The affiliation, connection, contact, and link between two or more individuals are all considered to constitute interpersonal relationships. There are several varieties of connections. This section emphasizes four different kinds of connections.

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8 0
1 year ago
According to the invisible hand concept, the best way for a society to encourage the creation of jobs and the production of the
shtirl [24]

Answer:

The correct answer is "Allow entrepreneurs personal freedom to follow their self-interest"

Explanation:

According to the invisible hand concept, the best way for a society to encourage the creation of jobs and the production of the products most wanted by consumers would be to allow entrepreneurs personal freedom to follow their self interest.

4 0
3 years ago
​Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety
Paha777 [63]

Answer:

The correct answer is letter "E": Derived demand.

Explanation:

Derived demand implies the quantity requested to manufacture a good is directly related to the supply requested from the market. If the demand for the good increases, it means the quantity of the materials needed to manufacture that good will increase as well.

6 0
3 years ago
What are 6 roles in the front of the house(restaurant)? listed in order from highest rank to lowest and why they're important.
CaHeK987 [17]

Answer:

does it need an attachment to it in order to answer it ?

Explanation:

5 0
2 years ago
Wind Power Systems has semi-annual bonds outstanding with a 5 percent coupon that will mature in 20 years. The face amount of ea
Mashcka [7]

Answer:

the pre tax cost of debt is 3.98%

Explanation:

The computation of the pre tax cost of debt is shown below;

Pre tax cost of debt is

= (Annual interest + (par value - market price) ÷ (number of years) ÷ (par value + market price) ÷ 2

= (0.05) + ($1,000 - $1,140) ÷ (20) ÷ ($1,000 + $1,140) ÷ 2

= 3.98%

Hence, the pre tax cost of debt is 3.98%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

5 0
3 years ago
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