True or False: With a discount bond, the return on a bond is equal to the rate of capital gain.
A. False: Bond returns can never equal the rate of capital gain; there must be a capital loss or gain indicated.
B. True: A discount bond pays fixed interest payments every year so the return is equal to the rate of capital gain.
C. True: A discount bond has no coupon payments so the return on the bond is equal to the rate of capital gain.
D. There is no way to determine this without the knowing the coupon amount and interest rate.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “True or False: With a discount bond, the return on a bond is equal to the rate of capital gain. A. False: Bond returns can never equal the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Twitterme, inc., is a new company and currently has negative earnings. the company's sales are $2,300,000 and there are 170,000 shares outstanding. if the benchmark price-sales ratio for the company is 4.
Answers (1)
Which food item contains a lot of processed simple sugars?
Answers (1)
Johanna's grandmother gives her $9,000 to pay for the entire first year's tuition at a state college, a year from now.
Answers (1)
Suppose a company has $200 in fixed costs and $40 per unit in variable costs. The company sold 10 items for a total of $1,000. How much of a net profit or loss did this sale produce?
Answers (1)
Suppose that the United States fixes the dollar-pound exchange rate. In the process of maintaining the fixed exchange rate, if the U. S. central bank starts to realize reduced reserves of pounds, this suggests that_.
Answers (1)
New Questions in Business
Soles is a footwear company which has recently set up its store in Ambrosia. To manufacture its products, Soles incurs a range of different costs. Which of the following would be an example of an indirect cost? a. Salary paid to factory workersb.
Answers (1)
The Nolan Corporation finds it is necessary to determine its marginal cost of capital. Nolan's current capital structure calls for 30 percent debt, 20 percent preferred stock, and 50 percent common equity.
Answers (1)
Gaston owns equipment that cost $17,000 with accumulated depreciation of $3,400. Gaston sells the equipment for $12,200.
Answers (1)
If the supply of loanable funds exceeds the demand then borrowers will bid up the interst rate. True / False.
Answers (1)
The scientific method begins with A. the development of a formal hypothesis. B. the gathering of information. C. the identification of a problem for investigation. D. methodical observation of a phenomenon of interest.
Answers (1)