Business, 16.03.2020 20:16 beav0919cnnowyfe2

Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond. (Select the best answer below.) A. The market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity increases. B. The market value of the bond approaches its par value as the time to maturity increases. The yield to maturity approaches the coupon interest rate as the time to maturity increases. C. The market value of the bond approaches its par value as the time to maturity increases. The yield to maturity approaches the coupon interest rate as the time to maturity declines. D. The market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity declines.

Answers: 1

Show answers

Answers

Answer from: ratpizza

D. The market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity declines.

Explanation:

The par value of a bond refers to the amount(in dollar) a purchased bond will be worth when it attains maturity. Market value on the other hand is the actual amount or price of a given commodity at any point in time in the stock market. There may be fluctuations in the par value or market value of a bond, However, a bond holder is entitled to the par value of his bond irrespective of the purchase price. Therefore, the market value of a bond approaches it's par value as the time to maturity declines.

The coupon interest rate is the earning a bondholder can expect to get from holding a bond. While the yield to maturity is the annual rate of return of a bond if held till maturity and assumes that interest Payments are reinvested at the same interest rate as the original bond. The yield to maturity also approaches the coupon interest rate as the time to maturity declines.

Answer from: Quest

Technicians are. they a lot

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

Another question on Business

Business, 21.06.2019 16:30

How is the architecture career pathway different from the construction pathway? a. architecture involves coordinating with contractors to make sure everyone stays on schedule. b. architecture involves using tools and equipment to build something new. c. architecture involves the design process, considering the function and safety of the project. d. architecture involves evaluating the work of contractors and employees.

Answers: 1

Answer

Business, 22.06.2019 08:20

How much does a neurosurgeon can make most in canada? give me answer in candian dollar

Answers: 1

Answer

Business, 22.06.2019 08:40

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100

Answers: 2

Answer

Business, 22.06.2019 11:50

The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november. materials conversion costs total equivalent units

Answers: 1

Answer

You know the right answer?

Explain the relationship that exists between the coupon interest rate and yield to maturity and the...

Questions