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lora16 [44]
4 years ago
7

An investor holds a 6% callable bond purchased at 105. If the issuer calls the bond before maturity, the yield to call (YTC) rea

lized by the investor would be A) equal to the yield to maturity (YTM). B) less than the coupon. C) greater than the yield to maturity (YTM). D) greater the current yield (CY).
Business
1 answer:
myrzilka [38]4 years ago
7 0

Answer: less than the coupon

Explanation:

When a bond that is bought at a premium of 205 is called before the bond matures by the issuer, this implies that the accelerated premium loss will have to be reflected in calculated yield to maturity.

It should also be noted that the YTC is the lowest among the yields for the premium bonds. Therefore, if the issuer calls the bond before maturity, the yield to call (YTC) realized by the investor would be less than the coupon.

Option B is correct.

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Each of the following is a type of homework except?
Tcecarenko [31]

Answer: concentration

Homework has this basic purposes: 1) practice 2) preparation 3) study, extend or elaborate, and integrate

Homework aims s to help students to strengthen what they learned in class and also to gather extra information beyond what is thought and integrate them into their everyday lives.

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3 years ago
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vovangra [49]

Answer:

  True

Explanation:

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Plants that have wildly varying production schedules or product mix may prefer a generous "safety stock." They may also prefer a generous supply inventory if their supply chain is unreliable.

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4 0
3 years ago
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andrezito [222]

Answer:

2%.

Explanation:

<u>Calculation of the alpha of the stock</u>

Implied Alpha Formula = Actual return - Expected return as per CAPM

Implied Alpha = 11% - 9%

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Since you believe the stock will provide instead a return 11%, its implied alpha will be 2%.

3 0
3 years ago
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sergiy2304 [10]
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anygoal [31]

Answer:

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Gamma has the highest current ratio and the best short-term solvency position

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3 years ago
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