Yes, because the bond's yield to maturity may have changed.
Do zero coupon bonds have a yield?
Without accounting for any interest payments, zero-coupon bonds always demonstrate yields to maturity adequate to their normal rates of return. The yield to maturity for zero-coupon bonds is additionally known as the spot rate.
What is the difference between a zero-coupon bond and a coupon bond?
Regular bonds, which also are called coupon bonds, pay interest over the lifetime of the bond and also repay the principal at maturity. A zero-coupon bond doesn't pay interest but instead trades at a deep discount, giving the investor a profit at maturity once they redeem the bond for its full face value.
Advantages Of Zero-Coupon Bond:
The Zero Coupon bonds eliminate the reinvestment risk. Zero-Coupon bonds don't let any periodic coupon payments, and hence a hard and fast interest on Zero Coupon bonds is guaranteed.
Learn more about zero coupon bond :
brainly.com/question/23549548
#SPJ4
Answer:
Passport
Annual finance charge =$450
Total annual cost = $2970
Traveller
Annual finance charge = $425
Total annual cost = $2945
Explorer
Annual finance charge =$400
Total annual cost = $2950
The travellers card is the best
Explanation:
Passport
Annual finance charge = 18% x 2500 = $450
Total annual cost = $2500 + 450 + 20 = 2970
Traveller
Annual finance charge = 17% x 2500 = $425
Total annual cost = $2500 + 425 + 20 = 2945
Explorer
Annual finance charge = 16% x 2500 = $400
Total annual cost = $2500 + $400 + $50 = 2950
The traveller is the best for a consumer because it has the lowest cost
She could exercise. Since she is sitting at a desk all day, going on runs on lunch break or when she wakes up could really help promote a healthy lifestyle.
I hope this helped!
Answer:
Total amount available in two years is $1,354,125.
Explanation:
The total amount available in two years can be calculated as follows:
Total amount in the deposit now = Current deposit + Amount planned to be deposited = $650,000 + $200,000 = $850,000
Future value of the total amount the deposit now = Total amount in the deposit now * (1 + Annual interest rate)^Number of years the deposit used = $850,000 + (1 + 15%)^2 = $1,124,125
Future value of next year's deposit = Next year's deposit * (1 + Annual interest rate)^Number of years the deposit used = $200,000 * (1 + 15%)^1 = $230,000
Total amount available in two years = Future value of the total amount the deposit now + Future value of next year's deposit = $1,124,125 + $230,000 = $1,354,125
Answer:
The answer is b
Explanation:
Demand for money is the situation in which money are held in cash form without spending it. The demand for money is a derived demand in the sense that people do not spend all their salaries when they receive it at the end of the month. The portion of their salaries which they do not spent immediately they are received is what we referred to as the demand for money. There are three reasons for holding money which are
Transaction motive :This is the desire to keep money in order to meet the day to day transaction of business such as buying of foodstuff and to meet other family need .
Precautionary motive : This is the desire to keep money in order to meet the unforseen circumstances which are not planned for but which immediately occur, such as sickness, unexpected visitors, breakdown of one's car,
Speculative motive :This is the desire to keep money with the hope of using the money in making quick money. It is a money held with the hope of giving it out in form of loan if the interest is high and at a short period of time.for instance purchasing shares at a lower prices and re-selling it at higher prices .it also includes buying goods at a lower prices and re-selling at a higher prices for example cars.
