Answer:
yield to maturity
Explanation:
Yield to maturity is the required rate of return of an investor in the market to hold the bond or other security until the maturity date of the bond.
A coupon carries two types of interest rate
- Coupon rate
- Yield to maturity rate
Coupon rate is the interest rate which is stated on the face value of the security. The interest payment on the security is made on this rate.
As mentioned above the Yield to maturity rate is the required rate of return of an investor in the market to invest in these bonds.
Answer:
Final Value= $13,585.46
Explanation:
Giving the following information:
You decide to invest in the stock market, which has earned about 11% per year over the past 80 years and is expected to continue at this rate. You decide to invest $1,000 today for 25 years.
We need to use the following formula:
FV= PV*(1+i)^n
FV= 1000*(1.11)^25= $13,585.46
Answer:
Explanation:
The government has two options, with regards to paying back its debts; taxation and open market operations. Through taxation, tax rates per unit may be increased, which subsequently raises enough money to be used to pay up the debt. As for open market operations, the government, through its treasury or exchequer may issue risk free treasury bonds and bills to members of the public at fixed coupon rates. Whatever funds raised from the bond and bill sale are eligible for repaying the debt.
A secured loan has claim on assets in case the lender defaults. For example, a home buyer takes out a loan (secured against the home) with a bank to buy home. If the home buyer can't make repayments (or even goes bankrupt), the bank can sell the home to recover their lost money.
An unsecured loan does not have claim on any assets. All else being equal, an unsecured loan has higher interest rate.
B (I think not a 100% sure)
