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lukranit [14]
3 years ago
6

You purchased a 30 year bond a year ago with a coupon interest rate and yield-to-maturity of 6%. Market interest rates today for

bonds of similar risk and maturity are 13%. If you decide to sell your bond today, you would expect: a. To sell the bond for less than what you paid for the bond.
b. To sell the bond for more than what you paid for the bond.

c. That since the coupon of the bond does not change, the price of the bond has not changed.

d. That since the par value of the bond does not change, the price of the bond has not changed.

e. That since there is insufficient information to make a determination why interest rates changed, it is impossible to determine whether the price of the bond has increased or decreased.
Business
1 answer:
Misha Larkins [42]3 years ago
8 0

Answer:A. To sell the bond for more than what you paid for the bond

Explanation:

The security market in which bonds are sold are affected by information in relation to specific bond either favorable or unfavorable information.

The price of the bond will appreciate in response to existing or anticaped positive information and will depreciate in response to negative or anticaped negative information..

The increase in market return in relation to the bond of similar nature in the above scenario shows an existing or anticipated positive development and for this the bond is expected to be sold than the purchased price.

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Answer:

According to the neoclassical theory and behaviroual economics:

Have unbounded willpower .

Explanation:

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4 0
3 years ago
Type the correct answer In the box. Spell all words correctly.
Kay [80]

Answer:

I think the question is incomplete

7 0
2 years ago
Location externalities (skilled labor force, supporting industries in place, etc.) are considered a __________ factor when choos
Scilla [17]

Location externalities (skilled labor force, supporting industries in place, etc.) are considered a<u> country-specific</u> factor when choosing a location of production.

In economics, an externality or outside fee is an indirect cost or benefit to an uninvolved third party that arises as an effect of some other celebration's interest. Externalities may be taken into consideration as unpriced items are concerned in either customer or manufacturer marketplace transactions.

Location externalities describe the mutual interplay among marketers, which at a micro-stage manner that the vicinity of one or extra families and/or companies in a neighborhood modifies the nice of that neighborhood.

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6 0
1 year ago
A property is purchased for $200,000 with an 80 percent LTV. After five years, the owner's equity is $80,000. What would be the
sweet-ann [11.9K]

Answer:

14.57%

Explanation:

Data provided in the question:

Purchasing cost of the property = $200,000

LTV = 80%

Time, n = 5 years

owner's equity = $80,000

Now,

Loan amount = Purchasing cost × LTV

or

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or

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Thus,

Annual EAHE = (\frac{\textup{Loan}}{\textup{Equity}})^{\frac{1}{n}}-1

or

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or

Annual EAHE = 0.1487

or

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5 0
1 year ago
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