A. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. FALSE
<u>Explanation:</u> If the yield to maturity (YTM) is less than the Coupon rate (CR) the bond is trading at a premium
B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. FALSE
<u>Explanation:</u> If the yield to maturity (YTM) is greater than the Coupon rate (CR) the bond is trading at a discount.
C. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. TRUE
D. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. TRUE
Answer:
x=1 y=0, x=2 y=4, x=3 y=8
Explanation:
substitute all the numbers in the x area and multiply then subtract 4
Answer:
The correct answer is letter "D": How well the economy is doing at a macro level.
Explanation:
The U.S. Bureau of Labor Statistics (BLS) is an agency in charge of gathering ad analyzing data regarding the labor market and productivity. In such a way, it provides useful output about unemployment and employment in different sectors of an overall economy. If the economy is underperforming, the unemployment rate will be higher but, it the economy is healthy and prosperous the unemployment rate should be lower than the employment rate.
Therefore, <em>by taking a look at the unemployment rate given by the BLS, Jeanine can have an idea of how well the U.S. economy is performing at a macro level.</em>
Answer:
It's determined by the: adjustment period.
Answer:
Their yield to call is 8.672%
Explanation:
The rate of return bondholders receives on a callable bond until the call date is called Yield to call.
Use following formula to calculate the yield to call
Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Where
C = Coupon Payment = $1,000 x 11% x 6/12 = $55
F = Face value = $1,000
P = Call price = $1,125
n -= number of periods to call = 7 years x 2 = 14 periods
Yield to Call = [ $55 + ( $1,000 - $1,125 ) / 14 ] / [ ( $1,000 + $1,125 ) / 2 ]
Yield to Call = 46.07 / $1,062
Yield to Call = 0.04336
Yield to Call = 4.336% semiannually
Yield to Call = 4.336% x 2
Yield to Call = 8.672% annually