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topjm [15]
4 years ago
8

When a bond's price falls, its yield to maturity and its current yield?a.falls; falls b.rises; rises c.falls; rises d.rises; fal

ls
Business
1 answer:
murzikaleks [220]4 years ago
7 0

Answer:

(B) rises; rises

Explanation:

There is an inverse relationship between a bond's price and its yield, be it its yield to maturity or its current yield. The relationship is evident is the pricing formula for a bond.

Bond Price = ∑\frac{Coupon}{(1+y)^{n} }

where y = the current yield of the bond (or yield to maturity)

n = the number or period of each coupon paid.

Thus, when a  bond'd price falls, its yield to maturity and current yield rise.

The yield to maturity of a bond is a single yield that equates the discounted values of all coupon and principal repayment of the bond to its current price. On the other hand, the current yield is the yield of the bond at a particular period and is influenced by the level of interest rate in an economy, the current rating of the bond, etc.

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If the total unit cost of manufacturing Product Y is currently $36 and the total unit cost after modifying the style is estimate
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What profit-oriented pricing method is often used because of the difficulty in establishing a benchmark of sales or investment t
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Using the following data, develop an allowance percentage for a job element that requires the worker to lift a weight of 30 poun
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Answer:

While estimating standard time of doing a job, some extra allowances are provided on the basis of nature of work. In this connection, different factors, like monotony, light, awkwardness, muscular force required etc. are taken into consideration. Calculation of this allowance is shown below:

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Suppose you are the president of a sugar company based in southern Florida. Poor sugar harvests in the Caribbean Islands means y
Yuliya22 [10]

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