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Amiraneli [1.4K]
3 years ago
13

When the market interest rate rises above the coupon rate for a particular quality of bond, the "current yield": will be below t

he coupon rate will be the same as the coupon rate will be above the coupon rate cannot be determined
Business
1 answer:
meriva3 years ago
4 0

Answer: will be above the coupon rate

Explanation:

The Coupon rate is a fixed rate that a bond issuer pays to it's bond holders. The <em>Current Yield</em> however is calculated by dividing the Coupon payment by the Price of the bond.

When Market interest rises above the Coupon Rate, the price of the bond decreases in the market and vice versa.

Because the price of the bond is now less and it is the divisor of the Coupon rate to get the Yield, it will give a higher percentage which will be more than the Coupon rate.

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What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%
KengaRu [80]

Answer:

PV of Perpetuity = $5000

Explanation:

A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,

PV of Perpetuity = Cash Flow  /  r

Where,

  • r is the required rate of return

PV of Perpetuity = 250 / 0.05

PV of Perpetuity = $5000

3 0
3 years ago
According to the Principle of Utility within the ethical theory of Utilitarianism, happiness is an extermely important factor in
Daniel [21]

True.

The Principle of Utility says actions are <u>right </u>when they promote happiness or pleasure, and wrong when they cause unhappiness or pain. So in order to figure out if something is right or wrong you will first have to know if it promotes happiness.

6 0
3 years ago
One year ago, you purchased a stock at a price of $43.20 per share. The stock pays quarterly dividends of $.18 per share. Today,
gizmo_the_mogwai [7]

Answer:

Capital gain = $2.16

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.  

Dividend is the proportion of the profit made by a company which is paid to shareholders.  

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.  

Therefore, capital gain  as follows:  

Capital gain = $45.36-43.20

Capital gain = $2.16

8 0
3 years ago
According to a recent survey, what percentage of local police agencies has experienced a "measurable increase" in the reporting
zheka24 [161]

According to a recent survey, 80 percentage of local police agencies has experienced a "measurable increase" in the reporting of computer and electronic crimes.

What is electronic crimes?

Tajikistan, Bangladesh, and China are the nations with the least cyber-security in the world, according to our research. Tajikistan had the greatest rates of crypto miner assaults (5.7%), PCs experiencing at least one local malware attack (41.16%), and users being attacked by banking malware (4.7%).

Some internet crimes target tangible objects like computers or servers. These offenses include copyright infringement, IPR violations, hacking, virus transmission, cyber and typo squatting, computer vandalism, and DDOS attacks.

To know more about electronic crimes, refer:

brainly.com/question/4511174

#SPJ4

3 0
1 year ago
A congresswoman from a state with several tire factories argues that the government should impose a tariff on tires because they
Korvikt [17]

Answer:

e. National-security argument

Explanation:

When people start talking about wars, different types of armed conflicts, or defending the country against its enemies, then they are using the national security argument. In this case, the argument is not very solid since military vehicles do not use regular tires, they use special tires that are generally not made in China.

6 0
3 years ago
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