When a bond's yield to maturity is less than the bond's coupon rate, the bond: ____________

Business

1 answer:

Sholpan [36]3 years ago

8 0

Answer:

The answer is (B) The bond is selling at a premium

Explanation:

What does it mean when a bond's YTM is less than its CR?

It means that the value of the bond in the market is higher than its value at par.

YTM and CR are two important factors influencing the purchase of bonds by investors.

YTM is the interest rate accruing to the sale of a bond which is held by the investor until its maturity date. It is measured in points or percentage.

CR is the amount of interest accruing to the owner/buyer of a bond. It is measured per annum.

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The driving forces in an industry are usually triggered by changing technology or stronger learning/experience curve effects. ar

koban [17]

Answer:

The driving forces in an industry are: Option C: major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions.

Explanation:

Driving force of any organization can be external or internal forces. External ones are like the competitors, profits or technology. Internal forces can be the knowledge of employees, office politics and even competence of all office people). All these factors influence the industries and help them shape the future of an organization.

Thus, Option C is the most appropriate driving force because it causes change in industry and create competition among industries and reshape the industry landscape.

5 0

3 years ago

Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10

Tomtit [17]

It can be deduced that the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.

<h3>How to calculate the expected rates of return</h3>

E(RA) = 0.1 (10%) + 0.2 (13%) + 0.2 (12%) + 0.3 (14%) + 0.2 (15%)= 13.2%

E(RB) = 0.1 (8%) + 0.2 (7%) + 0.2 (6%) + 0.3 (9%) + 0.2 (8%)= 7.7%

Therefore, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.

The standard deviation will be calculated thus:

Var(RA) = [0.1 (10%-13.2%)² + 0.2 (13%-13.2%)² + 0.2 (12%-13.2%)² + 0.3 (14%-13.2%)² + 0.2 (15%-13.2%)2 ] 1/2

= 1.5%

Var(RB) = [0.1 (8%-7.7%)² + 0.2 (7%-7.7%)² + 0.2 (6%-7.7%)² + 0.3(9%-7.7%)² + 0.2 (8%-7.7%)² ] 1/2

= 1.1%

Therefore, the standard deviation of stocks A and B are 1.5% and 1.1% respectively.

Learn more about rate of return on:

brainly.com/question/25821437

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2 years ago

Will Jones, Pharoah is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a

Reika [66]

Answer:

Total cost for 316 returns $3,962

Total cost for 408 returns $4,974

Total cost for 524 returns $6,250

Explanation:

The total cost incurred by Pharoah with the Mega Tax software is given by the fixed cost of $486, referring to the annual fees, added to the cost per tax return of $11 multiplied by the volume of returns filed (n):

$C= \$486+(\$11*n)$