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tensa zangetsu [6.8K]
3 years ago
12

Which of the following statements is INCORRECT. All else equal, 1. If a bond's yield-to-maturity (YTM, i.e., market interest rat

e) is greater than its coupon rate, then the bond is trading at a premium. 2. Duration measures the sensitivity of a bond's price to changes in interest rate. 3. If a bond's market value is equal to its par amount, then its YTM will be equal to its coupon rate. 4. The estimated market price of a bond is the sum of its future discounted cash flows.
Business
1 answer:
timurjin [86]3 years ago
4 0

Answer:

1

Explanation:

When the yield to maturity is greater than the coupon rate, the bond is selling at a discount.

When the yield to maturity is less than the coupon rate, the bond is selling at a premium.

When the yield to maturity is equal to the coupon rate, the bond is selling at par.

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Read more: brainly.com/question/25296988

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Assume now that the insurance company is a monopolist that wants to maximize expected profits. What price would the monopolist c
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Answer:

The answer is "r\leq 2.5"

Explanation:

Please find the complete question in the attached file.

When x is higher, that insurer's profits are greatly increased. The user wishes to obtain the same quantity in both cases.  

\to 500000-rx = 500000-rx + x- 200,000\\\\\to x = 200000

Its usefulness must be greater than 0 if there is no accident.

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