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 135 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?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

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?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Effects of growth rate on development. Effects of growth rate on development.
Schematic drawing of a permeation test cell used to measure the permeation rate of chemicals through ... Schematic drawing of a permeation test cell used to measure the permeation rate of chemicals through ...
Population growth rate % Population growth rate %
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ... AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ...
Earth Present Earth Present
Video: Neuron Structure Animation

For a complete list of videos, visit our video library