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Sedaia [141]
2 years ago
9

A 6 percent, annual coupon bond is currently selling at a premium and matures in 7 years. The bond was originally issued 3 years

ago at par. Which one of the following statements is accurate in respect to this bond today?a. The face value of the bond today is greater than it was when the bond was issued.b. The bond is worth less today than when it was issued.c. The yield-to-maturity equals the current yield.d. The coupon rate is less than the current yield.e. The yield-to-maturity is less than the coupon rate.

Business
2 answers:
Ksju [112]2 years ago
8 0

Answer:

e. The yield-to-maturity is less than the coupon rate.

Explanation:

When the yield is lower than the coupon rate, the bond is considered to be trading at a premium.

Price of bond = Present value of future coupon payments and present value of par value to be recieved on the date of maturity, discounting is done athe the rate at which market is prevailing.

Hence, if the yield rate is the prevailing market rate,coupon rate is compared to yield rate to invest in bond because the coupon is more compared to market rate.

Thus the investors would be charged more than the par value which is being traded at premium in order to set off the benefit of the payments of coupon.

vekshin12 years ago
6 0

Answer and Explanation:

the answer is attached below

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A stock is expected to pay a dividend of $0.5 at the end of the year (D1=0.5), and it should continue to grow at a constant rate
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Answer:

The stock’s expected price 5 years from today is $14.03

Explanation:

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Because the stock should continue to grow at a constant rate of 7% a year, the stock’s expected price 5 years from today: $10 x (1 + 7%)^5 = $14.03

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3 years ago
Read 2 more answers
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3 years ago
Metlock Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. 1/1 - Beginn
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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

1/1 - Beginning Inventory (Quantity 1,000 - Price/Cost = $12)

2/4 - Purchase (Quantity 2,000 - Price/Cost = $18)

2/20 - Sale (Quantity 2,500 - Price/Cost = $30)

4/2 - Purchase (Quantity 3,000 - Price/Cost = $23)

11/4 - Sale (Quantity 2,200 - Price/Cost = $33)

Units sold= 4,700

1) Periodic - FIFO

COGS= 1,000*12 + 2,000*18 + 1,700*23= 87,100

2) Perpetual - FIFO

COGS= 1000*12 + 1500*18 + 500*18 + 1,700*23= $87,100

3) Periodic - LIFO

COGS= 3,000*23 + 1,700*18= $99,600

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COGS= 2,000*18 + 500*12 + 2,200*23= $92,600

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Average price= (12 + 18 + 23)/3= 17.67

COGS= 4,700*17.67= $83,049

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3 years ago
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<h3>What is meant by Consumer Credit?</h3>

Consumer credit refers to debt incurred by an individual to pay for products and services. An example of consumer credit is a credit card.

Consumer credit might refer to any sort of personal loan, although it is more frequently used to denote unsecured debt that is incurred to pay for regular products and services. Consumer debt can, however, also refer to secured loans like mortgages and auto loans.

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brainly.com/question/14345325

#SPJ4

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