About the yield to maturity on bond and the bond price

Assignment Help Financial Management
Reference no: EM13849633

Which of the following statements is true about the Yield to Maturity (YTM) on a bond and the bond price?

A. the YTM is greater than the coupon rate when the bond is selling at a discount

B. the YTM is greater than the coupon rae when the bond is selling at a premium

C. the YTM is greater than the coupon rate when the bond is selling at par

Reference no: EM13849633

Questions Cloud

Which loan has the lowest cost : Bank Z offers a$1,000 loan at 9.24% interest paid quarterly. Bank M offers a $1,200 loan at 9.21% interest paid monthly. Which loan has the lowest cost?
Companys inventory at the lower of cost or market : A company’s normal selling price for its product is $29 per unit. However, due to market competition, the selling price has fallen to $24 per unit. This company's current inventory consists of 290 units purchased at $25 per unit. Replacement cost has..
About the produces motorcycle batteries : Prestopino Corporation produces motorcycle batteries. Prestopino turns out 2,100 batteries a day at a cost of $5 per battery for materials and labor. It takes the firm 23 days to convert raw materials into a battery. Prestopino allows its customers 4..
What ytm do these bonds offer : Johanson VI Advisors. Issued $1000 par value bonds a few years ago with a coupon rate of 7 percent, paid semiannually. After the bonds were issued, interest’s rates fell. Now with three years remaining before they mature, the bonds sell for $1,055.08..
About the yield to maturity on bond and the bond price : Which of the following statements is true about the Yield to Maturity (YTM) on a bond and the bond price?
Investments can earn : Marsha wants to have $1 million in her 401(K) in 30 years. She wants to invest $5,000 a year into the 401(K).  About how much more than $5,000 a year will she need to invest each year to meet her goal of $1 million if all investments can earn 8%?
Described as indirect finance : Which of the following cannot be described as indirect finance? A bond denominated in a $5000 coupon bond with a coupon rate of 5% has a coupon payment of ___
An insurance agent makes offer : An insurance agent makes this offer: If you pay him $50,000 today, we will pay you annual annuity payments of $5,000 for 15 years. If you can earn 5.13% on alternative investments, is this a good deal?
Tax-exempt municipal bonds and corporate bonds : If income taxes were substantially increased to cover the costs of a new national health care program, the interest rate spread between tax-exempt municipal bonds and corporate bonds would ____.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd