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Valentin [98]
3 years ago
9

Suppose you have a 1-year horizon and purchase a 5-year (annual) coupon bond. If the price of the bond on the horizon date is th

e same as the price you paid, your ROR will equal:
Business
1 answer:
Anni [7]3 years ago
4 0

Answer:

the bond's current yield.

Explanation:

When the price of the bond is equal to the initial price paid for the bond, the current yield rate of the bond is equal to the ROR of the bond. If there is the market price of the bond is the same as the initial issuance value of the bond the investors of the bond do not gain or lose anything from this bond from the change in price in the time period between the issuance of the bond and Purchasing date of the bond.

Current Yield = Annual Coupon payment / Market price of the bond

The bond yield will remain the same when the selling price of the bond and the issuance price of the bond remain the same. As the coupon payment is fixed every time.

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Rules and regulations enacted by various federal agent are crucial to real estate because. A. they are laws passed by Congress.

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The ruling is a powerful source of law. In principle, it ties the whole society. Courts are institutions that use the law on daily basis. Judges and magistrates, like all lawyers, consult legislation and governments of common law and custom using the particular case before them.

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3 years ago
Customer service research shows that ____ of customers defect from a company because they were treated with an attitude of indif
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Brief Exercise 5-58 Sales Discounts (Appendix 5A) Harry Gardner provides tax services for small businesses. This year's tax seas
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