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prohojiy [21]
3 years ago
15

When using trial and error to compute the yield to maturity (YTM) for a 6 percent coupon bond that trades at a premium, the proc

ess can be shortened if the initial guess is _______ 6 percent.
Business
2 answers:
k0ka [10]3 years ago
6 0

Answer:

less than 6%

Explanation:

when a bond trades at a premium, it means the bond's coupon rate was higher than the market rate, so investors are willing to pay more to purchase the bond, e.g. bond's face value is $1,000, if it is sold at a premium its market price will be higher than $1,000.

To determine the price of a bond sold at a premium or at a discount, you must determine the present value of the coupons paid plus the face value at maturity date. But if you are going to do this manually, for a bond that sells at a premium and its coupon rate is 6%, the actual bond yield will be lower than 6%.

kvv77 [185]3 years ago
3 0

Answer:

The correct answer is Lower than.

Explanation:

The yield at maturity (YTM) of a bond is the total return (which includes interest and capital gain) that it obtains upon expiration. It is expressed as a percentage and tells investors what the return will be if they acquire the bond and keep it until the issuer reimburses it. It is difficult to calculate the yield to maturity with precision, but you can approach its value if you use a profitability table or one of the many calculators that are available on the Internet for this purpose.

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Llana [10]
I believe the answer is Monopolist.
8 0
3 years ago
A. Suppose the wages of computer-factory workers rises. This will cause (the supply / the demand) of tablet computers to (shift
Mars2501 [29]

Answer:

Supply, shift in , rise fall

the demand, shift in, fall ,fall

supply , shift out fall, rise

the demand , shift out rise rise

the demand shift in fall fall

Explanation:

If the wages of factory worker increases, it becomes more expensive to hire workers, the cost of production increases and the demand for labour would fall. as a result, production would fall and the supply of tablets would fall. a decrease in supply leads to an inward shift of the supply curve. as a result of the fall in supply, quantity would fall and there would be a rise in price.

Substitute goods are goods that can be used in place of another good. If the price of notebooks falls, it becomes cheaper to purchase notebooks, so the quantity demanded of notebooks would rise and the demand for tablets would fall since it is cheaper to buy a tablet. the demand curve for tablets would shift in as a result of the fall in demand. As a result, price and quantity of tablets would fall.

Increase in the number of manufactures would lead to an increase in supply. this would cause a rise in the supply of tablets. when there is a rise in supply, the supply curve shifts out, prices fall and quantity increases.

the new game would increase demand for tablets because people would be interested in playing the game. as a result of the rise in demand, the demand curve would shift out, the quantity would rise and prices would rise

A complement is a good that is consumed together with another good. if the price of apps rise, it would become more expensive to buy apps as result the demand for tablets would fall. the demand curve would shift in and price and quantity would fall

6 0
3 years ago
5. Describe a product you know of that has elastic demand. Why is the demand for this
nalin [4]

A good or service is said to be highly elastic if there is a a slight change in price this will cause a  sharp change in the quantity. Usually these kinds of products are readily available in the market - example is jewelry. lottery ticket.

4 0
3 years ago
Kane manages a used bookstore. He reads a report advising him to stock
sergeinik [125]

Answer:

I would say that the answer is D. If he knows that people don't buy encyclopedia's, yet he stocks them, the store could lose money because no one would buy it.

Explanation:

Hope this helps. :D

4 0
2 years ago
Read 2 more answers
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Sophie [7]
That answer is True because it says that the lowest possible quality and it is true
4 0
3 years ago
Read 2 more answers
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