Business, 06.12.2019 01:31 lauren9261

Which of the following statements is correct?
a) you hold two bonds. one is a 10-year, zero coupon, issue and the other is a 10-year bond that pays a 6% annual coupon. the same market rate, 6%, applies to both bonds. if the market rate rises from the current level, the zero coupon bond will experience the larger percentage decline.
b) the time to maturity does not affect the change in the value of a bond in response to a given change in interest rates.
c) you hold two bonds. one is a 10-year, zero coupon, bond and the other is a 10-year bond that pays a 6% annual coupon. the same market rate, 6%, applies to both bonds. if the market rate rises from the current level, the zero coupon bond will experience the smaller percentage decline.
d) the shorter the time to maturity, the greater the change in the value of a bond in response to a given change in interest rates.
e) the longer the time to maturity, the smaller the change in the value of a bond in response to a given change in interest rates.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 02:30

The dollar value generated over decades of customer loyalty to your company is known as brand equity. viability. sustainability. luck.

Answers: 1

Answer

Business, 22.06.2019 16:00

Which plan offers a tax-free education?

Answers: 1

Answer

Business, 22.06.2019 19:40

Chang corp. has $375,000 of assets, and it uses only common equity capital (zero debt). its sales for the last year were $595,000, and its net income was $25,000. stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15.0%. what profit margin would the firm need in order to achieve the 15% roe, holding everything else constant? a. 9.45%b. 9.93%c. 10.42%d. 10.94%e. 11.49%

Answers: 2

Answer

Business, 22.06.2019 21:10

Acompany has two products: standard and deluxe. the company expects to produce 36,375 standard units and 62,240 deluxe units. it uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools.budgeted activity of cost driver activity cost pool budgeted cost standard deluxe activity 1 $ 93,000 2,500 5,250 activity 2 $ 92,000 4,500 5,500 activity 3 $ 87,000 3,000 2,800 what is the overhead cost per unit for the standard units? what is the overhead cost per unit for the deluxe units? (round activity rate and cost per unit answers to 2 decimal places.)activity expected costs expected activity driver activity rate1 93,000 2 92,000 3 87,000 standard activity activity driver activity rate allocated costs1 2 3

Answers: 2

Answer

You know the right answer?

Which of the following statements is correct?
a) you hold two bonds. one is a 10-year, zero...

Questions