What condition must exist if a bond’s coupon rate is to equal both the bond’s current yield and its yield to maturity? Assume the market rate of interest for this bond is positive.

Question

11-03-2020
Physics

contestada

What condition must exist if a bond’s coupon rate is to equal both the bond’s current yield and its yield to maturity? Assume the market rate of interest for this bond is positive.

Respuesta :

Otras preguntas

A typical car battery in a car is filled with a solution of sulferic acid, which is approximately 39.9% sulfuric acid. If the density of this solution is 1.3 g/

Develop an argument that explains how an organism is made up interacting body systems, which are all made up of cells. In your argument, explain how each level

Hansel and Gretel lived on the edge of a dark and foreboding forest. One day, while exploring, they were captured by a horrible witch, who threatened to eat the

Investigating Energy Systems Harnessing Human Energy Chapter 1 Lesson 1.2 Reasoning Tool Possible subclaims: The Battery System does have energy. or The Battery

quizlet on her peer review comments nancy was told that she had great delivery and clearly cared about her topic but didn't present her content in a way that wa

La intensidad de iluminación I de una fuente de luz varía inversamente con el cuadrado de la distancia d de la fuente de luz. Si la intensidad es 108 bujías cua

A 1.0 metre wooden ruler is damaged and no longer uniform. The mass of the ruler is 11.5 G the ruler is balanced on a pivot with a 50 gram mass as shown.Where i

At 30°F and atmospheric pressure, water? A. sublimes. B. melts. C. freezes. D. deposits. E. boils.

what constant acceleration, in si units, must a car have to go from zero to 60 mphmph in 10 ss ? express your answer in meters per second squared. aa

Pouvez-vous m’aidez s’il vous plaît ? Exercice 5. Factoriser autant que possible les expressions suivantes : 1. (2x + 4)(33x) + 2x + 4; 2. (2x + 1)(3x - 1) (3x

monica789412 monica789412 · Answer 1 · 2020-03-18T14:40:35+01:00

The condition that must exist if a bond’s coupon rate is to equal both the bond’s current yield and its yield to maturity is that THE BOND MUST BE PRICED AT PAR.

Explanation:

The par value is also the amount upon which the entity calculates the interest that it owes to investors. Thus, if the stated interest rate on a bond is 10% and the bond par value is $1,000, then the issuing entity must pay $100 every year until it redeems the bond.
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments.
When a bond is issued at par value it is sold for the face value amount. This generally means that the bond's market and contract rates are equal to each other, meaning that there is no bond premium or discount.