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.
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Ответ:
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.Ответ:
Relative density is proportional to the frequency of a material's density to its water density. Because both have had the same proportions, their proportion is also dimensionless.
Explanation:
The dimension of relative density:-
Relative Density of a Substance (R.D.) = Substance Density / Water Density.
Therefore, R.D. Is just a ratio or a number. There are no units or dimensions to it.
For example:- The density of iron is 8.5 GM's/cm^3 & the density of water is 1 gm/cm^3 (in cgs units).
Tension:- Surface tension is the propensity of the new worlds and infographics to reduce to the particle size which is least appropriate. Atmospheric pressure helps insects (e.g. water striders) can travel or move and on a water surface, typically object is sensed rather than water.