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vazorg [7]
3 years ago
12

A bond has a market price that exceeds its face value. Which of the following features currently apply to this bond?

Business
1 answer:
Setler79 [48]3 years ago
8 0

Answer: II. premium price

A bond which has a market price higher than its face value is said to be trading on a premium price. Which means that people are willing to pay more to buy the bond.

IV. yield-to-maturity that is less than the coupon rate

This is also correct because a bond sells higher than its face value when the yield to maturity also known as the bonds internal rate of return is lower than the coupon rate, which means that the bond is paying higher coupons than it needs to attract investors, and because of this investors are willing to pay a premium on it.

Explanation:

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5 0
3 years ago
the financial system consists of financial _____, such as commercial banks, and financial markets, such as the stock market.
vazorg [7]

The financial system consists of financial intermediaries, such as commercial banks, and financial markets, such as the stock market. This is further explained below.

<h3>What are financial intermediaries?</h3>

Generally, financial intermediaries are simply defined as Banks, building societies, and unit-trust companies are all examples of financial intermediaries.

In conclusion, Institutions like commercial banks and marketplaces for trading financial instruments like stocks and bonds make up the financial system.

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5 0
2 years ago
What distinguishes the money market from the capital market?.
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Answer:

Money markets are used for short-term lending or borrowing usually the assets are held for one year or less whereas, Capital Markets are used for long-term securities they have a direct or indirect impact on the capital. Capital markets include the equity market and the debt market.

Explanation:

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8 0
3 years ago
1. What are reserves held by banks?
Paraphin [41]

Answer:

This is what I found!

Explanation:

Bank reserves are the cash minimums that must be kept on hand by financial institutions in order to meet central bank requirements. The bank cannot lend the money but must keep it in the vault, on-site or at the central bank, in order to meet any large and unexpected demand for withdrawals.

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