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sattari [20]
3 years ago
13

The required rate of return on a bond is:

Business
1 answer:
____ [38]3 years ago
7 0

Answer:

None of these choices are correct.

Explanation:

The required rate of return is the minimum return an investor expects to achieve by investing in a project, or in other words,

The required rate of return on a bond is the return that a bond issuer must offer in order to entice investors to purchase the asset.

They are predominantly set by market forces and determined by the price at which issuers and investors agree.

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Wave check i just been balling out every season
Irina-Kira [14]

Answer:

ok cool

Explanation:

7 0
3 years ago
The idea that investors today compare the returns on bonds with differing times to maturity to see which is expected to give the
Zielflug [23.3K]

Answer:

expectations theory

Explanation:

Expectations theory is defined as the prediction of what short-term interest rates will amount to in future based on the current long-term interest rates on an investment.

The theory suggests or states that "an investor will earn the same amount of interest by investing in two consecutive one-year bond investments that in one two-year bond investment".

Simply put, the theory say that one can invest twice in a one year bond and still make the same interest rate as investing once in a two-year bond.

This theory helps investors to make profits faster and even higher through multiple investments on bonds.

Cheers.

8 0
3 years ago
Sometimes, public goods whose benefits are less than their costs still get produced because:
Hatshy [7]

Answer & Explanation:

C. the benefits accrue to politically powerful government officials and their constituents

3 0
3 years ago
Consider two bonds, a 3-year bond paying an annual coupon of 3%, and a 20-year bond, also with an annual coupon of 3%. Both bond
BabaBlast [244]

Answer:

New price = $919.81

Explanation:

Computation of the given data are as follows:

Let Face value (FV) = $1,000

YTM (Rate ) = 6%

Time period (Nper) = 3 years

Coupon rate = 3%

Coupon payment = 3% × $1,000 = $30

So, we can calculate the new price by using financial calculator.

The attachment is attached below:

New price = $919.81

8 0
3 years ago
This famous Act banned all combinations and practices that restrained free trade. It ended up banning monopolies, vertical integ
jolli1 [7]

Answer:

The Sherman Antitrust Act.

Explanation:

The Sherman Antitrust Act was enacted by the federal on 2nd July 1890. The act was passed in response to the growing competition among the business. The act was named after Senator John Sherman the proponent of the act. The act prohibited charging of unfair prices on farmers and merchants and favoriting large companies.

This act restrained the growth of monopolies who were practices that were trying to stop free trade.

<u>It was an anti-trust act; trusts were the big business markets from which stakeholders would transfer theirs on a single trustee. This created a monopoly in the market disabling other companies</u>.

So, the correct answer is the Sherman Antitrust Act of 1890.

7 0
3 years ago
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