I would say letter “E” but the government already knows all of our personal information, so whats the point... probably being watched threw your computer/phone camera rn
A command economy is no freedom to the people.
The mixed economy has public input and government input
A free-market system is to the public where they can freely change prices and products. It is free from government intrusion
Answer: $1051.51
Explanation:
Coupon rate = 10%
Face value = $1,000
Yield to maturity = 8%
Annual coupon will be:
= Face value × Coupon rate
= 1000 × 10%
= 100
Therefore, the price of bond will be:
= Annual coupon × Present value of annuity factor + $1000 × Present value of the discounting factor
= (100 × 2.5771) + (1000*0.7938)
= 257.71 + 793.8
= $1051.51
The price of the bond is $1051.51
Answer:
The Answer is B) Rises in the secondary market decreases.
Explanation:
When the coupon rate on newly issued bonds<u> decreases</u> relative to older, outstanding bonds, the market price of the older bond rises in the <u>secondary market.</u>
<u></u>
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate
For example, a $2,500 bond with a coupon of 10% pays $250 a year. Typically these interest payments will be semiannual, meaning the investor will receive $250 twice a year.
If two bonds offer different coupon rates while all of their other characteristics (e.g., maturity and credit quality) are the same, the bond with the lower coupon rate generally will experience a greater decrease in value as market interest rates rise.
Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.
Cheers!
