1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna35 [415]
4 years ago
14

All else constant, a coupon bond that is selling at a discount, must have: a coupon rate that is equal to the yield to maturity.

a yield to maturity that is less than the coupon rate. semiannual interest payments. a coupon rate that is less than the yield to maturity.
Business
1 answer:
Arte-miy333 [17]4 years ago
3 0

All else constant, a coupon bond that is selling at a discount, must have a coupon rate that is less than the yield to maturity.

<u>Explanation:</u>

In a scenario when a bond is bought at par, the coupon rate and d the yield to maturity remains equal. The reason behind this behavior is the preliminary investment is offset completely by bond repayment at maturity, which means the fixed coupon payments will only be counted as profit.

When the bond is bought at a discount, in that case, the bond's coupon rate stays lower as against the yield to maturity.

You might be interested in
Banks Company sold merchandise on account for $35,000 with terms 2/10, n/30. The cost of goods sold was $27,600. If the invoice
WITCHER [35]

Answer:

The amount of cash received by Banks Company is $34,300

Explanation:

The computation of the cash received by the bank company is shown below:

= Merchandise amount - discount

where,

Merchandise amount is $35,000

And, the discount equal to

= Merchandise amount × discount percentage

= $35,000 × 2%

= $700

Now put these values to the above formula  

So, the value would equal to

= $35,000 - $700

= $34,300

3 0
4 years ago
What is a cost of filing bankruptcy?
nikitadnepr [17]

Answer:

It appears on a consumer's credit report for up to 10 years

Explanation:

Bankruptcy is a legal means of declaring that a person or business cannot repay its debts.

The cost of filing for bankruptcy is that it damages credit and appears on a consumer's credit report for up to 10 years after it has been filed.

5 0
3 years ago
Analog televisions, such as the one shown above, are in which stage of their product life cycle according to the textbook? accel
Ludmilka [50]
The answer is the decline stage. The decline stage of a product life cycle happens when sales drop which may be in arrears in large part to new technologies or innovations that replace existing as was the case with analog television sets. Digital technologies directed to the progress of standard which is high definition then 3D HDTV and now organic light-emitting diode 3D smart HDTVs.
3 0
3 years ago
A borrower has secured a 30-year, $150,000 loan at 7% with monthly payments. Fifteen years later, the borrower has the opportuni
aliina [53]

Answer:

Return on investment ≈ 29%

Explanation:

<em><u>using excel function </u></em>

Determine :

Rate = 7% / 12 = 0.0058

Nper value = 30 years * 12 = 360

PV = -$150,000

∴ PMT value = $997.95

next : calculate the outstanding balance 15 years later

=  ( 997.95 / 0.00583 )  * ( 1 - ( 1 / ( 1 + 0.00583 )^15*12 ))

= 171174.96 * 0.6489

= $ 111,075.43

<u>Considering the opportunity to refinance </u>

Rate = 6% /12 = 0.005

Nper = 15 * 12 = 180

Pv = - $111,075.43

∴ PMT = 937.32

the monthly saved up payment = PMT 1 - PMT 2

= 997.95 - 937.32  = $60.63

Finally

Rate of return on investment

= 2500 = 60.63 * ( \frac{1 - (\frac{1+r}{12})^{-15*12}  }{r} )

hence Rate of return ≈ 29 %

attached below is a screenshot of the excel function used for question 2 and it can be used for question 1 as well just change the values

6 0
3 years ago
The Real Estate Settlements and Procedures Act (RESPA) applies to: Select one: A. those parties who are indirectly related to a
ad-work [718]

Answer:

D. all residential mortgages for occupancy only.

Explanation:

  • The act applies to the loan purchases, property investments and equity lines of credit. It proves brokers to give disclosure of borrowers regarding the real estate.
8 0
3 years ago
Other questions:
  • Baker Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,0
    10·2 answers
  • n a perfectly competitive industry, the equilibrium price is $56 and the minimum average total cost of the industry's firms is $
    10·1 answer
  • Owens Finest Mattress Co., Inc. decided to employ an anti-mission statement. Which of the following phrases did they use?
    13·2 answers
  • If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innova
    9·1 answer
  • Converse Florists​ &amp; Co. reported assets of $ 1 comma 200 and equity of $ 350. What is its debt​ ratio? (Round your percenta
    11·1 answer
  • A laryngectomy is often performed to treat dysphagia.<br><br> True<br> False
    12·2 answers
  • _______is a series of pre-booked, one-on-one interviews from a fixed location with a series of journalists or talk show hosts. G
    5·1 answer
  • From what part of income should someone take savings?<br>​
    11·2 answers
  • 1. If you are the seller, how will you improve your product to make it saleable? 2. If you are a buyer, what are the things do y
    5·1 answer
  • Read the argument below and determine the underlying principle that was used to come to the conclusion presented: A free college
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!