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sertanlavr [38]
2 years ago
5

The price of a coupon bond and the yield to maturity are ________ related; that is, as the yield to maturity ________, the price

of the bond ________.
Business
1 answer:
shepuryov [24]2 years ago
8 0

Based on the relationship between the above mentioned measures, the following is true:

  • Price and yield to maturity are <u>inversely </u>related.
  • When YTM <u>rises</u>, the price of the bond <u>falls</u>.

<h3>What is Yield to Maturity?</h3>
  • It is the discount rate on the bond.
  • It shows the riskiness of the bond.

When the YTM is high, it means that the bond is more risky which leads to it having a lower price to compensate for the risk. The reverse is true.

Find out more on YTM at brainly.com/question/15172286.

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Suppose the manager of an ice cream store is trying to forecast the pounds of ice cream that they will sell based on what they h
disa [49]

Based on the information give your forecast for period 7 is 40.

<h3>Forecast for period 7</h3>

Given:

Time-series trend equation=25.3+2.1x

Period=7

Let x present period 7

Hence:

Forecast for period 7 =25.3 +2.1(7)

Forecast for period 7 =25.3 +14.7

Forecast for period 7 =40

Inconclusion your forecast for period 7 is 40.

Learn more about forecast here:brainly.com/question/24730207

6 0
3 years ago
You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your compan
VikaD [51]

Answer:

$5,225,417

Explanation:

first payment 800000

1 quarter         250000

2 quarters 254000

3 quarters 258064

4 quarters 262193

5 quarters 266388

6 quarters 270650

7 quarters 274981

8 quarters 279380

9 quarters 283851

10 quarters 288392

11 quarters 293006

12 quarters 297694

13 quarters 302458

14 quarters 307297

15 quarters 312214

16 quarters 317209

17 quarters 322284

18 quarters 327441

19 quarters 332680

20 quarters 338003

11% = (1 + i/4)⁴

i = 0.106

quarterly interest = 2.65%

Now we need to determine the present value of this  annuity and our discount rate is 2.65%. I will use an excel spreadsheet to determine the present value of the 20 quarterly payments and then add the initial payment.

$4,425,417 + $800,000 = $5,225,417

5 0
3 years ago
In larger organizations that have stock ownership plans, the employees may not see a strong link between their actions and the c
NemiM [27]

Answer:

True

Explanation:

Stock ownership plans refer to those plans whereby the existing employees are provided with an opportunity to purchase the stocks of the company at a lower price than they are offered in the open market

Employee stock option plans are one of the stock ownership plans. The condition for availing such plans is usually the length of the service of the employees. The benefit is recorded as an employee compensation.

In the context of big organizations with innumerable employees, employees may not be able to identify themselves as significant and may consider those with major chunk of shareholdings as the ones whose actions affect the stock price.

This being merely an illusion since collective efforts of all the employees affect the company's stock price.

8 0
3 years ago
Which of the following conditions ensures that excess profits cannot persist in a perfectly competitive market over the long run
konstantin123 [22]

Answer:

Ease of entry into the market

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services.

In the long run, perfect competition make zero economic profit because if firms are making economic profits in the short run , new firms would enter into the industry in the long run. This is made possible because of the ease of entry into the market.

I hope my answer helps you

3 0
3 years ago
Two principles of fraud insurance​
Arturiano [62]

hi buddy

here is your answer

  • Insurance fraud involves any misuse of insurance policies or applications in order to illegally gain or benefit.
  • Insurance fraud is usually an attempt to exploit an insurance contract for financial gain. The majority of insurance fraud cases involve exaggerated or false claims.

hope it helps

please mark me pls

#sibi❤

8 0
3 years ago
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