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
Rus_ich [418]
4 years ago
11

Which of the following statements is CORRECT?

Business
2 answers:
dangina [55]4 years ago
6 0

Answer:

D) If a coupon bond is selling at par, its current yield equals its yield to maturity, and its expected capital gains yield is zero.

Explanation:

A bond's yield to maturity is the total interest that the bond should yield if you held it until maturity date. The yield to maturity is expressed as an annual rate of return.

If the bond is selling at par, it means that it is selling at face value, so the bond's coupon is equal to the bond's yield to maturity.

If you buy a bond at discount, then you will have a capital gain (purchase price < par value) and that capital gain should yield an interest. But in this case, since you bought the bond at par, then you will not have any capital gains.

agasfer [191]4 years ago
3 0

Answer:

D, If a coupon is selling at par, its current yield equals its yield to maturity, and its expected capital gains yield is zero.

Explanation:

The yield of a bond is the same as its yield to maturity in that the yield to maturity of any bond is a function of the growth of the economy. The yield ot maturity of any bond is the bond's rate of return which is the return that investors will receive should all the promised payments be made.

Cheers

You might be interested in
I’m 15 Years Old I Need A Job Changing Baby Girl Poop Diapers Do Any Of Y’all Know Where There Is A Place Where They Allow 15 Ye
scZoUnD [109]
Not a job, but you can baby sit for people if you know how to take care of kids
3 0
2 years ago
Your father paid $10,000 (cf at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then
natta225 [31]

From the problem statement it is clear that here we need to find out simple interest rate. 
One do not get interest on any investment made at the end of tenure.  
Putting this mathematically:
 Let amount at the end of 5th year as A 
Simple Interest for 5 years, SI = 750 *5
 SI = 3750
 Hence A = 10000 +3750
 A= 13750
 Let rate of return = R
 Tenure t = 5
 But,
  A = P(1 + R*t/100)
 13750 = 10000( 1+ R*5/100)
 13750 = 10000 + 50000R/100
 3750 = 500R
 R = 3750/500
 R = 7.5 %
 
 Hence rate of return is 7.5% per annum (answer)
7 0
4 years ago
Algebra with pizzazz why are small balloons cheaper than large balloons
Afina-wow [57]
Small balloons are cheaper than large balloons because THERE'S BEEN LESS INFLATION.

I found this answer after answering a series of polynomials that has to be factored. I'm not really that sure, but the formation of the letters made me deduce the answer. 

to check, see attachment and answer the polynomials yourself.
Download pdf
7 0
3 years ago
What does the passage suggest about rocco corresca s economic situation during his early days in america? explain your answer
serg [7]
Rocca corresca was an immigrant that came into america when he was a little boy in 1902

in His writing, he describe that he lived in a very poor economic condition. He was forced to be a beggar only to face that all the money that he earned from begging will be taken away by his old man or the boys on his neighborhood

hope this helps
3 0
3 years ago
The expenditure multiplier leads to greater than one-for-one changes in output when autonomous expenditure changes because______
In-s [12.5K]

Answer:

This is because a change in autonomous expenditure changes income and sets off further changes in induced expenditure.

6 0
3 years ago
Read 2 more answers
Other questions:
  • The following amounts represent totals from the first three years of operations. Calculate the balance of Retained Earnings at t
    13·1 answer
  • What's a possible opportunity cost when you spend $100 on a pair of sneakers?
    12·1 answer
  • Practice of a skill that is spread out over several sessions is known as _____ practice
    6·1 answer
  • Kubin Company’s relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average cos
    11·1 answer
  • A decrease in the price of a good will lead​ to:_______
    6·1 answer
  • Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be repor
    8·1 answer
  • The mythical Hacker Microbrewery in Rosenheim, Germany, makes a brand of beer called Golden Eagle, which bottles and sells in ca
    9·1 answer
  • Discuss <br>any five roles of<br>entrepreneurship in the economic<br>growth of a country ​
    11·1 answer
  • 14. Joss Norton deposited a check for $474.85 and a check for $821.15. He
    14·1 answer
  • Do you imagine yourself becoming an entrepreneurship and managing your business in the future?
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!