The price of the bond is $100.
The bond's price is the present value of the face value plus the present value of the interest accrued throughout the bond's term.
The coupon interest rate is 5% of 100, that is $5 per year. The yield to maturity is also 5%. Because the coupon rate is equal to the yield, the bond's present value will only be its face value.
Present value = 5(P/A, 5%, 2) + 100(P/F, 5%, 2)
= 5×1.85941+ 100×0.90703
= 100
Therefore, the price of the bond is $100.
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Answer: Statement that “There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds “ is FALSE
A mutual fund is a pool of stocks, bonds or other funds where an investor purchase his shares. He gets one to meet his investment goals so evaluating a mutual fund's performance is needed and must involve thorough research to lessen risk.
Professional fund managers do make mistakes, so it is a must that investors continually evaluate their mutual fund investments.
The bag's coloring and design are considered its trade dress.
<h3>
What is a trade dress?</h3>
- The commercial look and feel of a product or service that identifies and distinguishes the source of the product or service are referred to as trade dress.
- It encompasses the different aspects (such as material design and shape) used to package a product or service.
<h3>What is a certification mark?</h3>
- A certification mark is a sort of trademark that is used to show consumers that specific goods and/or services, or the providers of those goods and/or services, have satisfied certain requirements.
<h3>What is a service mark?</h3>
- A "service mark" is a form of trademark that is protected and governed by the Lanham Act.
- Service marks are used to identify and distinguish one individual's or organization's services, even if they are unique, from those supplied by others.
<h3>What is a collective mark?</h3>
- A collective trademark, collective trademark, or collective mark is a trademark owned by an organization that is used by its members to identify themselves with a certain degree of quality or accuracy, geographical origin, or other features specified by the organization.
Therefore, the bag's coloring and design are considered its trade dress.
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Answer:
b. investment grade corporate bond
Explanation:
Credit rating is used to show the reliability of a security. The Investment Grade is a credit rating the is low risk bond. There is low possiblity of default on this type of investment.
Medium rating of A and BBB represent the investment grade corporate bond.
This is an attractive investment for the more conservative investor.
This is an ideal investment choice for the 50-year old customer with very low tax bracket, in a state with high income tax rates. So she is seeking income and preservation of capital.
