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padilas [110]
3 years ago
13

Investors, when calculating the present value of a bond's future cash flows (i.e, when valuing a bond), technically use which on

e of the following variables as the discount rate in the present-value calculations?
a. required return
b. yield to maturity
c. expected return
d. face value
e. coupon rate
f. time to maturity
Business
1 answer:
Masteriza [31]3 years ago
5 0

Answer:

b. yield to maturity

Explanation:

The future cash flows of the bonds are discounted to the present value using the yield to maturity or market related rate of the bond. The required return of the bond represents the coupon payments that the bond is offering.

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An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. The trader's net sales proceeds e
Lina20 [59]

Answer:

[C] Strike price minus the premium

Explanation:

A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.

A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.

Put Buyer's profit is expressed as;

= Strike price -  Option premium paid - Current market price upon expiry

Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.

6 0
3 years ago
There are five basic steps to personal financial planning and their related tasks. Arrange these steps and examples of related t
svp [43]

Answer:

B. Evaluate your financial health. Record all expenses for a month to compare income and expenses.

D. Define your financial goals. Pay off credit​ card(s) by the end of this school term.

A. Develop a plan of action. Develop a budget matching income and projected expenses for the remainder of this academic year.

E. Implement the plan. Reduce expenses in problem areas so amounts do not exceed budgeted projections.

C. Review progress on the​ plan, reevaluate the​ plan, and revise the plan or start over with a new one. Based on this​ year, develop a revised budget for next year based on projected income and expenses.

Explanation:

The five basic steps of financial planning are evaluate, define, develop, implement, and review, or EDDIR for short. It basically by knowing your current position and defining how you want to be in the future. Then you must develop a plan and try to implement that plan. After some prudent time, you should go back and review if the plan was successful or not.

5 0
3 years ago
What is a cash book used for?​
Alinara [238K]

Answer:

to keep track of all business transactions in case of an audit

8 0
3 years ago
Read 2 more answers
Manufactured goods needed to produce other goods and services are called
salantis [7]
When manufactured goods are used to produce other goods and services, they are called capital goods.<span>True</span>
3 0
2 years ago
How do any of these life decision problems
natita [175]

Answer:

baseially you are putting in a person is affecting your life. you come up with a solution. write a postive way to solve it then right a negavitve way to solve it.  then write when you are going to solve  your problem. then the steps that are needed.

8 0
3 years ago
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