Answer:
B. the weighted average time to maturity of the bond's cash flows
Explanation:
t = time to maturity
r = required return
C = coupon payment
M = maturity
V = market value
Frm the duration formula we can notice there is a weighted average as there is a sum of the coupon payment which is latter divide over the bonds market value
A caterer is someone who arranges the delivery, preparation and presentation of food for clients. If you've ever attended a bridal shower, fund raiser, rehearsal dinner, wedding reception or a bar mitzvah that had beautifully prepared and presented food, chances are that event was catered.
Answer:
C) It does not consider cash flows occurring after the payback period
Explanation:
Although the payback period (payback rule) is a convenient and easy way of determining the <em>break-even point </em>of an investment (when will the cash inflows cover the initial expenditure), the truth is that it does not take into consideration what happens with the cash flows after the payback period.
For example, when comparing two investments with a similar payback period. It would be a mistake to immediately opt for the one with a lower payback period without assessing and determining the cash flows after the payback period for both of them.
The right to sell a company's goods or services in a
particular area; also : a business that is given such a right.