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
sladkih [1.3K]
3 years ago
5

The structure of repayment for most long-term bonds consists of a. fixed coupon payments every year until maturity. b. interest

payments that vary by the yield to maturity each year. c. fixed coupon payments each year plus the face value or par value at maturity. d. converted payments from interest to dividends halfway to the bond's maturity. e. a balloon payment at maturity.
Business
1 answer:
Margaret [11]3 years ago
3 0

Answer:

The correct answer is letter "B": interest payments that vary by the yield to maturity each year.

Explanation:

Bonds are investments in the form of loans that companies provide. The firm pays investors a coupon yield, which is the annual or semiannual interest paid on the principal of the bond purchased. The payments continue until the bond reaches its maturity or the amount of the principal is completely paid off.

You might be interested in
A limitation of bond ratings is that they ____
Andrej [43]

A limitation of bond ratings is that they focus exclusively on default risk.

When investing, the bond rating represents the creditworthiness of a corporate or government bond. It's not the same as a person's creditworthiness. Ratings are published by rating agencies and used by investment professionals to assess the likelihood of debt repayment.

Bond Rating is a character-based credit rating system used to assess bond quality and creditworthiness. Investment grade bonds are rated by Standard & Poor's from AAA to BBB- and by Moody's from Aaa to Baa3. Junk bonds have a lower rating.

Learn more about bond rating here:brainly.com/question/17667917

#SPJ4

8 0
1 year ago
A mortgage-loan officer persuades unsuspecting consumers to sign up for exotic mortgages, such as "option ARMs." These mortgages
Alex

Answer: A. legal but not ethical

Explanation: Introducing mortgage plans to consumers in other to cater for their needs by a mortgage-loan officer is not a legal crime which will be penalized by the law. However, it is an ethical obligation on the path of the mortgage-loan officer to explain the modalities attached to a certain mortgage plan to consumers, both the advantages and the demerits. In the options ARM mortgage plan, it affords consumers to pay below the interest rate on the mortgage, this short paid interest are later added to the principal and the rates increases. This may cause a lot more harm than good to consumers who do not have detailed knowledge of this particular loan process.

5 0
3 years ago
Steven puts aside some of his money for future use. He is a _____ .
gavmur [86]
The answer is A, a saver. 

He is putting money aside for later instead of spending it on anything else
4 0
3 years ago
Read 2 more answers
What is the art of getting your work done through people in a harmonious way? having good interpersonal skills, having good work
Arlecino [84]
The answer would be: Having good interpersonal skills
7 0
3 years ago
Read 2 more answers
If the market risk premium is 8%, then according to the capm, the risk premium of a stock with beta value of 1.7 must be:
Zinaida [17]

The Capital Asset Price Modeling (CAPM) gives the formula for calculating the expected return of an asset given the risk as:

Rs = Rf + β<span> (Rm – Rf)
Where,</span>

Rs = expected return of the financial asset

Rf = risk free rate of return

β = beta value of the asset

Rm = average return on the capital market

The factor (Rm – Rf) is also called as the market risk premium while the factor (Rs – Rf) is the stock risk premium.

Rs – Rf = β (Rm – Rf)

Rs – Rf = 1.7 (0.08)

Rs – Rf = 0.136 = 13.6%

Answer:<span> greater than 12%  (= 13.6%)</span>

4 0
3 years ago
Other questions:
  • Lens Care Inc. (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for
    7·1 answer
  • What is a main problem with determining the social benefits of a public good like a community fireworks show?
    9·1 answer
  • Please help me please
    13·1 answer
  • When the amount for land is 36,000 and the amount paid for expenses is 10,000, the balance of total asset is
    7·1 answer
  • Holliman Corp. has current liabilities of $407,000, a quick ratio of 1.90, inventory turnover of 4.50, and a current ratio of 3.
    12·1 answer
  • For this question, assume that the Phillips curve equation is represented by the following: πt − πt−1 = (m + z) − αut. Which of
    10·1 answer
  • June call and put options on King Books Inc. are available with exercise prices of $30, $35, and $40. Among the different exerci
    10·1 answer
  • The checkbook balance of Lester Co. was $922.55. The bank statement revealed a balance of $3,881.14. The bank statement showed i
    6·1 answer
  • Which of the following techniques will help the writer of an advertisement
    12·1 answer
  • Many employment contracts have mandatory arbitration clauses.<br><br><br> False<br><br> True
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!