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
Dafna11 [192]
1 year ago
5

True or false: when pricing a bond, the present value of the interest payments is added to the present value of the maturity val

ue of the bond.
Business
1 answer:
Mila [183]1 year ago
4 0

It is True, when pricing a bond, the present value of the interest payments is added to the present value of the maturity value of the bond.

In a most important + interest mortgage, the primary (unique amount borrowed) is divided into same monthly amounts, and the hobby (fee charged for borrowing) is calculated at the splendid principal balance every month. this means the month-to-month interest payments declines through the years because the wonderful fundamental declines.

The three sorts of interest payments consist of simple (everyday) interest, accumulated hobby, and compounding interest.

hobby is the economic rate for the privilege of borrowing money, normally expressed as an annual percent price (APR). interest is the quantity of money a lender or monetary group gets for lending out money.

The interest at the country wide debt is how much the federal government have to pay on remarkable public debt every 12 months. The country wide debt includes debt owed to individuals, to businesses, and to foreign significant banks, in addition to intragovernmental holdings.

Learn more about interest payments here:- brainly.com/question/2151013

#SPJ4

You might be interested in
What should investors consider when planning for their retirement?
Annette [7]

Retirement planning should include determining time horizons, estimating expenses, calculating required after-tax returns, assessing risk tolerance, and doing estate planning. Start planning for retirement as soon as you can to take advantage of the power of compounding.

Planning for retirement is making preparations for your future so that you can continue to achieve all of your objectives and desires on your own. Setting your retirement goals, calculating how much money you will require, and making investments to increase your retirement savings are all included in this. Every retirement strategy is different.

Planning for retirement is crucial because it might prevent you from running out of money in later life. Your strategy can assist you in determining the rate of return you require on your assets, the appropriate level of risk, and the maximum amount of income you can safely draw from your portfolio.

Learn more about Planning for retirement here

brainly.com/question/22544798

#SPJ4

5 0
2 years ago
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $30, $38, and $90. The nu
galina1969 [7]

Answer:

The one-day rate of return on the index is 3.43%

Explanation:

Given that the shares were priced at;

$30    for    710,000 shares

$38    for    610,000 shares

$90    for    310,000 shares

Changes in prices of shares

$34-$30=4

$36-$38= -2

$92-$90=2

Return=change in price of shares/initial price of shares *100

The return will be;

4/30*100 =13.33

-2/38*100= -5.26

2/90*100 = 2.22

Total = 13.33+2.22 - 5.26 =10.29

10.29/3 =3.43

3 0
4 years ago
If your parents withdraw $125,000 from a money market deposit account so they can put a down payment on a house,
Contact [7]

Answer:

M2 decreases and M1 increases.

Explanation:

M1 and M2 are measures of money.

M1 is the narrowest definition of money. It includes currency, travellers check, demand deposit and other checkable deposits.

M2 includes M1 , small denomination time deposit, money market deposit and other assets that can easily be changed into cash easily and at a very little cost.

M3 includes M2, large domination time deposit and less liquid assets.

If $125,000 is withdrawn from the money market funds ,m2 reduces because money market fund is a component of m2.

M1 increases because $125,000 is converted to cash.

I hope my answer helps you.

4 0
3 years ago
1. The point at which quantity demanded and quantity supplied are equal:______
salantis [7]

Answer:

1. Market Equilibrium, 2. Interest Rate, 3. Rationing, 4. Supply Shock, 5. Excess Supply, 6. Excess Demand, 7. Price Floor

Explanation:

1. The point at which quantity demanded and quantity supplied are equal: <u>Market Equilibrium </u>

2. The financial and opportunity costs consumers pay in searching for a good or service : <u>Interest Rate </u>

3. A system of allocating scarce goods and services by criteria other than price: <u>Rationing </u>

4.  A sudden drop in the supply of a good: <u>Supply (decrease - leftward shift) shock </u>

5. Any situation in which quantity supplied exceeds quantity demanded: <u>Excess Supply  </u>

6. Any situation in which quantity demanded exceeds quantity supplied: <u>Excess Demand </u>

7. A government-mandated minimum price that must be paid for a good or service: <u>Price Floor (Minimum Support Price)</u>

8 0
3 years ago
A nation's production possibilities curve is bowed out from the origin because: A. resources are not equally efficient in produc
Ilia_Sergeevich [38]

Answer:

The correct answer is option A.

Explanation:

A production possibility curve shows the different bundles of maximum possible two goods that can be produced using the given resources. The production possibility curve is concave to the origin.  

This shape of the curve is because of opportunity cost. We know that to increase the production of one commodity we need to sacrifice production of its alternative.  

The resources can not be perfectly substituted and the opportunity cost goes on increasing with the increase in output, that's why the production possibility curve is bowed out or concave to the origin.

5 0
3 years ago
Other questions:
  • HELP!!!
    12·1 answer
  • Atlas industries combines the smaller investment proposals from each operational unit into a single project for planning purpose
    8·1 answer
  • Which of the following statements is correct?a.An advantage of the corporate form for many businesses is the fact the corporate
    10·1 answer
  • On February 1, 2020, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on Januar
    10·1 answer
  • A____helps a society provide for the wants and needs of Its people.
    14·1 answer
  • Why might a company invest in another​ company? A. To ensure a steady supply of raw materials if the company being purchased is
    9·1 answer
  • What factors, do you think determine how long a product will stay in the product life cycle
    7·1 answer
  • Why is it important for the business owner to<br> understand the market they are selling to?
    14·1 answer
  • A customer buys 17. 01 in gas and requests one five dollar [$5] lottery ticket, two one dollar [$1] lottery tickets, and one [$3
    5·1 answer
  • which of these line items appears on both the statement of stockholders' equity and the balance sheet?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!