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arlik [135]
1 year ago
13

Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value o

f 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.
Business
2 answers:
rusak2 [61]1 year ago
5 0

Answer:

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:

One explanation of the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond, is that <u>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.</u>

According to the definition of yield to maturity, it takes into consideration the coupon rate (i.e. the interest amount earned per year) for the number of years left to maturity, it is often higher because it treats the amount earned each year as being re-invested.

<u>Therefore the amount of yield to maturity will fall as the time to maturity nears and will approach the coupon rate</u>

Secondly, A bond's par value is the dollar amount it will be worth when it reaches maturity.

Before its maturity date, the bond may sell for more than par value on the secondary market as the yield it pays becomes more attractive to buyers.

<u>Therefore the difference between par value and market value is the yield. hence as maturity nears, yield to maturity falls and market value approaches par value because the bond is what its par upon maturity.</u>

slavikrds [6]1 year ago
4 0

Answer: 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.

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Answer:

1,030

Explanation:

Calculation for what is the exponential smoothing forecast value

Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)

Exponential smoothing forecast value = 1,000 + 0.3 x (100)

Exponential smoothing forecast value = 1,000 + 30

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Therefore the exponential smoothing forecast value will be 1,030

5 0
2 years ago
Several factors can contribute to long-term organizational success. one is the establishment of a core ideology that collins and
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Original Source Material

Student Version

Merck, in fact, epitomizes the ideological nature--the pragmatic idealism--of highly visionary companies. Our research showed that a fundamental element in the "ticking clock" of a visionary company is a core ideology--core values and a sense of purpose beyond just making money--that guides and inspires people throughout the organization and remains relatively fixed for long periods of time.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Several factors can contribute to long-term organizational success. One is the establishment of a core ideology that Collins and Porras (2002) describe as "core values and sense of purpose beyond just making money" (p. 48). Also, the importance of a visionary leader that guides and inspires people throughout the organization and remains relatively fixed for long periods of time is hard to over emphasize.

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Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

This is not plagiarism.

Answer: Option 3.

<u>Explanation:</u>

Plagiarism in very simple words is the copying of the content of the document that has been written by some one else in to your own document. During this copying the due acknowledgement is also not given to the document from which it has been taken.

The document that has been talked about in the question above is not an example of plagiarism. The proof for this is the due acknowledgement given to the references from whose document the content has been taken into the document.

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1 year ago
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Answer:

we will sell bond and invest for better investments

Explanation:

we know here that Yield on Treasury Bond of Grandfather =  2.25%

so we believe interest rate will be continue for rise

Bond are valued = $950

so we  the Bond and invest the proceed for better interest rate

and

we know  Grandfather bond price will be decrease if rate increase as that we predict

because we know  Bonds prices and the interest rate is inversely proportional to the each other

so as that  if interest rate increases Bonds prices will be decrease

and the Vice Versa

so that we will sell bond and invest for better investments

because here if once the interest rate increase then he will selling point regarding for Bond and price will be fall

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2 years ago
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Jet001 [13]
The correct answer that would best complete the given statement above would be option A. SEQUENCE refers <span>to the order of things, such as performing the goal-setting processes. Goal setting is a process in which you will be thinking of possible ideas that will help and understand how to achieve your goals. Hope this answer helps.</span>
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Answer:

A) straight rebuy

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