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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 :

brainly.com/question/23549548

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When controls were removed from the economy people raced to buy goods that been awhile businesses rapidly raised prices kept low
laila [671]
The increase in demand and limited availability or unchanged availability  of supply= Price Increase 

5 0
3 years ago
When an electronics company sells its global positioning systems to a car manufacturer, it is engaged in ________ marketing.
viktelen [127]

Answer:

It is called a Business to Business or B2B Marketing

Explanation:

B2B or Business to Business Marketing simply occurs when a business organisation decides to going into transaction with an other business organisation. The two businesses can be within the same locality or not. A criteria is that a B2B marketing involves a commercial transactions which would be to the benefit of both parties.

The <u>opposite of B2B is B2C (Business to Consumer) marketing, this is the commonly known type of marketing where a consumer/individual</u> patronizes the products of a manufacturer or business organisation.

B2B will usually occur when a company needs certain products or materials to complete its own finished goods and this can be purchased from another organisation that has been adjudged to be a producer of same.

It could also occur, when a business is required to take on the services of another business for instance in audit cases.

In the case of the question, the global positioning system is a finished product of the electronics company required by the car manufacturer to complete his own finished product (the car). Hence, the B2B marketing.

5 0
3 years ago
Whether on paper or computer, which of the following would you use to record bookkeeping data in a ledger? A. Balance sheet B. J
Eduardwww [97]
You want to record all of that stuff inna journal
4 0
3 years ago
Which of the following does NOT provide for incentives based on standards that are expressed in terms of time period per unit of
Lisa [10]

Answer:

a. Merrick System

Explanation:

Merrick System does not provide for incentives based on standards that are expressed in terms of time period per unit of production

6 0
3 years ago
Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,650 pounds of materi
ivanzaharov [21]

Answer:

D. $1,344 unfavorable

Explanation:

We know,

Direct materials quantity variance = (Standard Quantity - Actual Quantity) × Standard price

Given,

Standard Quantity = 4,440 pounds of material

Actual Quantity = 4,650 pounds of material

Standard price = $6.40

Putting the values into the above formula, we can get,

Direct materials quantity variance = (4,440 - 4,650) pounds × $6.40

or, Direct materials quantity variance = -210 pounds × $6.40

Therefore, Direct materials quantity variance = $1,344

As the actual quantity is higher than standard quantity, the situation is unfavorable. Therefore, option D is the answer.

6 0
3 years ago
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