An investor purchased a fixed-coupon bond at a time when the bond's yield to maturity was 6.9%. The investor sold the bond prior to maturity and realized a total return of 7.1%. Which of these most likely occurred while the investor owned the bond?
a. Market interest rates declined.
b. Market interest rates increased.
c. The inflation rate increased.
d. The bond's current yield increased above the bond's coupon rate.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An investor purchased a fixed-coupon bond at a time when the bond's yield to maturity was 6.9%. The investor sold the bond prior to ...” 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
A company reports basic earnings per share of $5.10, cash dividends per share of $2.05, and a market price per share of $65.55. The company's dividend yield equals:
Answers (2)
Which of the following is true about planned economies? a) In a planned economy, the state owns all means of production. b) In a planned economy, entrepreneurs have economic incentives that encourage innovation.
Answers (1)
Primary target markets differ from secondary and tertiary target markets by the
Answers (1)
Which process is correctly described? Control - each member of the population has an equal chance of being included in the sample. Random selection - extraneous variables are eliminated.
Answers (1)
Shelton Company has a debt-equity ratio of. 75. Return on assets is 6.9 percent, and total equity is $815,000. What is the equity multiplier? Return on equity? Net income?
Answers (1)
New Questions in Business
Fly-By-Night Couriers is analyzing the possible acquisition of Flash-in-the-Pan Restaurants. Neither firm has debt. The forecasts of Fly-By-Night show that the purchase would increase its annual aftertax cash flow by $370,000 indefinitely.
Answers (1)
Assume the M&M with corporate taxes. The corporate tax rate is 40%. Your firm is currently unlevered with 100% equity. As of now, the value of the firm's equity is $400K, and the firm's cost of capital is 10%.
Answers (1)
LO 5.5In a process costing system, which account shows the overhead assigned to the department? cost of goods sold finished goods inventory raw material inventory work in process inventory
Answers (1)
At tax season isn't an individual who has withheld too little and taxes can expect A. Prosecution by the IRS B. A heavy refund C. Additional withholding D. A large tax bill
Answers (2)
Which of the following best describes stagflation? a. rising unemployment together with economic growth b. deflation coupled with a decline of the money supply c. deficits coupled with rising unemployment d.
Answers (1)