Business, 14.04.2020 21:04 weirdojuwin

Bonds A, B, and C all have a maturity of 10 years and a yield to maturity of 7%. Bond A's price exceeds its par value, Bond B's price equals its par value, and Bond C's price is less than its par value. Which of the following statements is CORRECT
a. If the yield to maturityon each bond decreases to 6%, Bond A will have the largest percentage increase in its price.
b. Bond A has the most interestrate risk.
c. If the yield to maturityon the three bonds remains constant, the prices of the three bonds will remain the same over the next year.
d. If the yield to maturityon each bond increases to 8%, the prices of all three bonds will decline. e.Bond C sells at a premiumover its par value.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 19:40

Policymakers are provided data about the private and social benefits of a good being sold in the market. quantity private mb ($) social mb ($) 6 6 9 7 4 7 8 2 5 9 0 3 what is the size of the externality? if the externality is positive, enter a positive number. if negative, make it a negative number. $ given this data, policymakers must decide whether to address the associated externality with a subsidy or a tax. as their economic consultant, which of the two policy tools would you recommend? a subsidy a tax

Answers: 2

Answer

Business, 22.06.2019 10:30

On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?

Answers: 2

Answer

Business, 22.06.2019 19:00

The following are budgeted data: january february march sales in units 16,200 22,400 19,200 production in units 19,200 20,200 18,700 one pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be:

Answers: 3

Answer

Business, 22.06.2019 20:20

Amanager of a store that sells and installs spas wants to prepare a forecast for january and june of next year. her forecasts are a combination of trend and seasonality. she uses the following equation to estimate the trend component of monthly demand: ft = 30+5t, where t = 1 in january of this year. seasonal relatives are 0.60 for january and 1.50 for june. what demands should she predict for january and june of next year

Answers: 2

Answer

You know the right answer?

Bonds A, B, and C all have a maturity of 10 years and a yield to maturity of 7%. Bond A's price exce...

Questions