This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The yield on a bond is that interest rate for which the present value of the interest and principal ... (Read 145 times)

809779

  • Hero Member
  • *****
  • Posts: 579
on: Jul 1, 2018
The yield on a bond is that interest rate for which the present value of the interest and principal payments promised by the bond are
 a. equal.
  b. as large as possible.
  c. equal to the price of the bond.
  d. equal to the face value of the bond.

Question 2

A firm that wished to calculate the present value of its future nominal profits should use the ____ to do so.
 a. real interest rate
  b. nominal interest rate
  c. nominal interest rate minus the expected inflation rate
  d. real interest rate minus the expected inflation rate


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Liamb2179

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

b


809779

  • Hero Member
  • *****
  • Posts: 579
Reply #2 on: Jul 1, 2018
Thank you


Liamb2179

  • Sr. Member
  • ****
  • Posts: 365
Reply #3 on: Jul 1, 2018
No problemo


« previous next »
 

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Effects of growth rate on development. Effects of growth rate on development.
For this bimolecular reaction, the rate constant k is second order For this bimolecular reaction, the rate constant k is second order
Peptide bond formation Peptide bond formation
Everyday situations sometimes present opportunities for children to build information processing ... Everyday situations sometimes present opportunities for children to build information processing ...
Total Fertility Rate in Japan: Actual versus Forecast Total Fertility Rate in Japan: Actual versus Forecast
Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ... Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ...
Video: Muscle Twitch and Muscle Tension - Motor unit size and force

For a complete list of videos, visit our video library