Define Yield to Maturity
Describe what do you mean by the term Yield to Maturity?
Expert
Yield to Maturity:
• The yield to maturity of a bond is the discount rate which makes the current value of the coupon and principal payments equivalent to the price of the bond.
• It is the yield which the investor earns when the bond is held to maturity and all the coupon and principal payments are prepared as promised.
• A bond’s yield to maturity modifies daily as interest rates rise or reduce.
• We can evaluate a bond’s yield to maturity by employing a trial-and-error approach.
Supply curves for different kinds of capital goods are usually: (w) perfectly elastic. (x) perfectly inelastic. (y) upward sloping. (z) downward sloping. Can anybody suggest me the proper explanati
For a specified distribution of income within a purely competitive economy, marginal social benefit will the same marginal social cost unless: (w) “hit and run” entrepreneurs prosper. (x) economic profits
When you buy a bond when the interest rate is 10 percent and sell it while the interest rate is 15%, you will obtain: (w) less than you paid for the bond. (x) more than you paid for the bond. (y) identical amount that you paid for the bond. (z) income
The Production possibilities frontiers describe the concepts of: (1) A trade-off between inflation and unemployment. (2) Positive economics versus the normative economics. (3) Scarcity, opportunity costs, and reducing returns. (4) Absolute advantages
I have a problem in economics on Minimum Wage Laws-unskilled workers. Please help me in the following question. The Minimum wage legislation is unlikely to help: (i) Skilled workers who compete by unskilled workers. (ii) Unskilled workers who don&rsqu
I have a problem in economics on Relative Prices-Rational consumer. Please help me in the following question. The rational consumer buying decisions based on: (1) Present prices. (2) Absolute prices. (3) Nominal prices. (4) Relative prices. Q : Price charging by minimizing average See a monopolist which cannot price discriminate but that maximizes profit. When this firm produces the level of output where is average cost at its minimum that will charge a price: (i) equal to marginal cost and generate zero economic profit. (ii) e
See a monopolist which cannot price discriminate but that maximizes profit. When this firm produces the level of output where is average cost at its minimum that will charge a price: (i) equal to marginal cost and generate zero economic profit. (ii) e
The transformation of predictable income streams within wealth is: (1) asset liquidation. (2) financial optimization. (3) rent-seeking. (4) monopolization. (5) capitalization. I need a good answer on the topic of <
Investment is within equilibrium in all of the given cases EXCEPT while: (w) after adjusting for risk, maturity, and liquidity, all income producing assets yield identical returns. (x) all prices of assets exactly equal their respecti
Refer to the given production possibilities curve and give answer of following question . At the onset of the Second World War the Soviet Union was already at full employment. Its economic adjustment from peacetime to wartime can best be described by the movemen
18,76,764
1960245 Asked
3,689
Active Tutors
1429816
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!