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Doss [256]
3 years ago
10

A 15-year bond with a face value of $1,000 currently sells for $850.

Business
1 answer:
Veseljchak [2.6K]3 years ago
6 0

Answer:

c. The bond's yield to maturity is greater than its coupon rate.

Explanation:

The coupon rate is that amount of bond which is calculated on the principal amount whereas yield to maturity is that rate which is held till maturity date and generate the investment till the maturity date.  

The relationship between the interest rate and the bond value is inverse. It means when the bond value is decrease than the interest is increase and vice versa. So it increases the yield to maturity and decreases the coupon rate

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The expected return for stock A and B is 8.55% and 15.11% respectively.

<h3>What is the Expected return?</h3>

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

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Answer:

For how many days must the count have been overdue assuming the supplier uses a 365-day year? 50 days

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% Interest           15%  

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X=50 days  

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