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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Unlike consumer-focused salespeople, business-focused salespeople: question 23 options: require customers to come directly to a retail store. call on other companies to sell their products. shorten the sales process time.
Answers (1)
People end up tossing 12% of what they buy at the grocery store (Reader's Digest, March, 2009). Assume this is the true population proportion and that you plan to take a sample survey of 540 grocery shoppers to further investigate their behavior.
Answers (1)
Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2017. On May 1, Tomba issued 30,000 shares. (a) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued for cash.
Answers (1)
During its first year of operations, a company that incurred $1,900 in production costs reported cost of goods sold of $1,000 and selling costs of $300. Its ending finished goods inventory was $900. True or False?
Answers (1)
Which best describes the role of nucleic acids?
Answers (1)
New Questions in Business
Which of the following is NOT one of the strategies incorporated in the Sarbanes-Oxley Act of 2002? (A) Establish compliance programs (B) Establish ethics programs (C) Dictate maximum compensation levels (D) Attain greater board independence
Answers (1)
On March 1, 2022, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $86,000 in cash.
Answers (2)
Which of the following statements is true of the market introduction stage of the product life cycle?
Answers (1)
Look at the thesaurus entry that follows this sentence. which word is the best replacement for the word "expensive"? the new insurance plan was expensive - far beyond karl's ability to pay.
Answers (1)
The best way for a franchisee and franchisor to evaluate each other is for the potential franchisee to go to a sales presentation. for the potential franchisee to spend time working in a franchise location.
Answers (2)