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 150 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?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Reversible formation of a disulfide bond by the oxidation of two molecules Reversible formation of a disulfide bond by the oxidation of two molecules
Fossil Fuels Energy Yield and Pollutants—Comparison Fossil Fuels Energy Yield and Pollutants—Comparison
Peptides and the Peptide Bond Peptides and the Peptide Bond
Fertility, Mortality, and the Net Rate of Reproduction in Sweden Fertility, Mortality, and the Net Rate of Reproduction in Sweden
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
Ionic Bond: Sodium Chloride Ionic Bond: Sodium Chloride
Video: Cardiac Cycle (Part 1 of 4)

For a complete list of videos, visit our video library