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
julia-pushkina [17]
3 years ago
7

A 30-year 7% corporate bond was issued exactly 10 years ago. You purchased this bond today, when it was trading to yield 9%. Tom

orrow, the yield decreased down to 6%, only to increase to 11% after 10 years. At maturity, the bond’s realized yield must be equal to 7%.
A. True
B. False
Business
2 answers:
Alik [6]3 years ago
7 0

Answer:

B) false

Explanation:

Realized yield is the actual return that an investment yielded during the time period that the investor held it.

Using an excel spreadsheet I determined the price of the bond (81.74), but it is not really relevant. Since I will hold the bond during 20 years until maturity, the bond will yield 9% until maturity, so that means that the realized yield of my investment was 9%, not 7%. The realized yield depends on the price at which you bought the bond and the time you hold it. If someone bought the bond in 10 years and held it to maturity, their realized gain will be 11%.

sergiy2304 [10]3 years ago
3 0

Answer:

The answer is "B"

False

Explanation:

At maturity the bond’s realized yield can not be equal to 7% because of the uncertain future interest rate.

You might be interested in
The amount of systematic risk present in a particular risky asset, relative to the systematic risk present in an average risky a
Margaret [11]

Answer:   Option A          

             

Explanation: For finance, an investment's beta (β or beta coefficient) is a measure of risk as opposed to idiosyncratic variables resulting from vulnerability to current market fluctuations.

The financial assets ' equity pool has a beta of precisely 1. A beta under 1 may imply either a less volatility in investment than the market, or a volatile portfolio whose price changes are not closely linked to the industry.Beta is relevant because it calculates the risk of a diversification-free investment.

6 0
3 years ago
A contract that is voidable
Mars2501 [29]

A voidable contract, unlike a void contract, is a valid contract which may be either affirmed or rejected at the option of one of the parties.

Reasons that can make a contract voidable include failure by one or both parties to disclose a material fact; a mistake, misrepresentation or fraud; undue influence or duress; one party's legal incapacity to enter a contract; one or more terms that are unconscionable; or a breach of contract.

4 0
3 years ago
Keenan owns a retail store. He often receives payments from some of his manufacturers to ensure their products are placed in the
Serjik [45]

Answer: Slotting allowances

Explanation:

 The slotting allowances is the term which is used to charge by the manufacturers for the specific products and the services ion the market. It is also known as the slotting fee and the charged allowances is specifically varies or depend upon the specific products and the different marketing conditions.

According to the given question, the slotting allowances is refers as the payment that is made by the producers for ensuring their goods and the services best place.  

 Therefore, Slotting allowances is the correct answer.          

3 0
3 years ago
Suppose you are planning a summer vacation and book a hotel room online for $149 a night. However, when you get to the reservati
Anettt [7]

Answer:

iii

Explanation:

Most of the time hotels will charge more when more rooms are booked, so when you book your hotel room, and many rooms are booked, most people do get charged more.

3 0
2 years ago
You are evaluating your company’s segmentation approach and discover an important missing condition. They have measured their ta
zysi [14]

Answer:

Profitability

Explanation:

It is not enough that our target market is reachable, stable, cost-effective, and measurable. We also need to measure how profitable the market is. We know that our major aim of doing business is to make profit, therefore the profitability of the market must be measured as well.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Susan has a 401k plan through her job and has accumulated $375,000 in her account. Her company has invested her funts in a high
    9·1 answer
  • The cost accountants at the Doering Company regressed total overhead costs and direct labor hours for the past 30-months and rep
    6·1 answer
  • On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of $107 million. The bonds mature
    10·1 answer
  • An employer who fires an, at will employee in a public and humiliating manner may be liable to the employee for intentional infl
    5·1 answer
  • When placing the vehicle in motion, it is strongly recommended that the last task you perform is to release the parking brake. w
    14·1 answer
  • There are two producers of wagon wheels that together are the exclusive providers to a large community. the executives of these
    10·1 answer
  • Samantha is a marketing manager and researcher at a beverage company. Her company plans to launch a new health drink in the mark
    14·1 answer
  • A. If a wage of $10.25 were to be imposed on this market, such that the market was not longer strictly competitive, what would b
    7·1 answer
  • 1. Why does Sutherland argue that businesses need to think about the small stuff rather than the big, splashy things?
    12·1 answer
  • What are noncash investing and financing activities, and how are they recorded in QuickBooks Accountant?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!