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marshall27 [118]
3 years ago
6

Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the exp

ected rate of return under certain assumptions. Which of the following is one of those assumptions? The probability of default is zero. The bond is callable.
Business
1 answer:
Rashid [163]3 years ago
6 0

The probability of default is zero.

Answer: Option 1.

<u>Explanation:</u>

Yield to maturity (YTM) = [(Face value/Present value)1/Time period]-1. On the off chance that the YTM is not exactly the security's coupon rate, at that point the market estimation of the security is more prominent than standard worth ( premium security).

In the event that a bond's coupon rate is not as much as its YTM, at that point the bond is selling at a rebate or it is being sold at a discount rate.

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why it is so difficult to compare unemployment rates in the United States with unemployment rates in poorer countries?
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Answer: unemployment rate depends solely on the size of labor force and every country has different labor force sizes.

Explanation: https://coursepivot.com/tutor-answers/which-of-the-following-helps-explain-why-it-is-so-difficult-to-compare-unemployment-rates-in-the-united-states-with-unemployment-rates-in-poorer-countriesselect-the-correct-answer-below/#:~:text=Cross-country%20comparisons%20of%20unemployment%20rates%20is%20difficult%20to,and%20every%20country%20has%20different%20labor%20force%20sizes.

4 0
3 years ago
You own 100 shares of Troll Brothers' stock, which currently sells for $120 a share. The company is about to declare a 2-for-1 s
SSSSS [86.1K]

Answer:

You will have 200 shares of stock, and the stock will trade at or near $60 a share.

Explanation:

When a company declares a 2-for-1 stock split, its shares' value is cut by half, while the number of stocks of each share holder doubles.

If, before the split, the stock had a value of $120 per share, after the stock split it will sell for close to $60 a share.

If you previously had a position of 100 shares of Troll Brothers' stock, after the 2-for-1 split you will have 200 shares.

Therefore, you will have 200 shares of stock, and the stock will trade at or near $60 a share.

8 0
3 years ago
German expressionist films are characterized by _____________ settings, ____________ camera angles, and themes such as _________
dimulka [17.4K]
<span>german expressionist films are characterized by exaggerated settings, oblique camera angles, and themes such as alienation.</span>
4 0
3 years ago
Read 2 more answers
If the payment is not made on the credit card by the end of the grace period, which of the following will occur?
Phoenix [80]

C. Interest will be charged - Apex

3 0
2 years ago
Suppose you enter into a 9-month long forward contract on a non-dividend-paying stock when the stock price is S0 = $125 and the
Vladimir79 [104]

Answer:

<u>Future Price</u>

F0: 126.89

F3: 113.13

F4: 113.41

<u>Value of the contract:</u>

a) zero (by definition)

b) -13

c) -13

Explanation:

<em>forward price:</em>

F = S (1+r)^{n}

being S the spot rate

time 9 months and

rate 2% <u>continuous componding</u>

As the rate is continuous we calculate using the e number instead:

F = S e^{rn} +cost

F = 125 e^{0.02 \times 9/12}

F = 125 x 1.015113065

F = 126.8891331 = 126.89

<u>3th month into the contract:</u>

F = 112 e^{0.02 \times 6/12}

F = 113.1256187 = 113.13

<u>4th month</u>

F = 112 e^{0.025 \times 5/12}

F = 113.4087866 = 113.41

<u>value of the contract</u>

at third month:

Vt = St - F0

Vt = 112 - 125 = -13

at fourth month

Vt = 112 - 125 = -13

3 0
3 years ago
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