Answer:
D) has a market price that exceeds par value
Explanation:
Option A, incorrect, because duration is not less than 1 always and here duration might be less than or equal to maturity.
Option B, incorrect, the face value is less than market value in premium bond.
Option C , incorrect, because a premium bond could be non callable
Option D, correct, because market value of of bond is higher than par value on premium bond.
Option E, correct, it is a discount bond when price is less than par value
Answer:
The current yield is 5.2% and capital gain is 2.63%.
Explanation:
The par value of bond = $10000
Current price = $9500
Annual coupan payment = 5%
Annual coupan payment = 10000 × 5% = $500
Now calculate the current yield.
The current yield = annual coupon payment / current price
The current yield = 500 / 9500 = 0.052 or 5.2%
Now calculate the capital gain. In the question, it says that it starts at $9500 so its original price is 9500.
Capital gain yield = (9750 – 9500) / 9500 = 0.0263 or 2.63%
Explanation:
Global investment banks include JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Credit Suisse, and Deutsche Bank.
Answer:
This flow of money into and out of Nakato is measured by <u>'Balance of payments</u>'.
Explanation:
We are asked to determine the type of flow of money into and out of Nakato.
We know that a systematic record that represents all economic transaction between the residents of a country and rest of world in a given time period is known as balance of payments.
This transaction can be in different forms.
- The exchange of goods for goods,
- Services and goods for money.
Therefore, the given flow of of money into and out of Nakato is measured by <u>'Balance of payments</u>'.