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.
An illustration of a strategic barrier would be a: (w) high-technology firm registering a patent on their newly-designed time machine. (x) law establishing the USPS as the only mail service in the United States. (y) set of costly advertising campaigns
It is not possible for a nondiscriminating, that profit maximizing monopolist to attain equilibrium where MR = MC as well as: (w) economic profit = 0. (x) economic profit is negative. (yz marginal costs are at the minimum of average costs [MC = ATC].
When a minimum legal price of a good is set below the intersection of the supply and demand curves there will be: (1) shortages and pressures for decreases in price. (2) pressures for increases in price and the emergence of black mark
A purely competitive market would NOT be illustrated by: (1) many potential buyers and sellers. (2) each buyer or seller being a price taker. (3) an absence of long-run barriers to entry or exit. (4) aggressive advertising to compare brands. (5) a sin
Describe Break Even Price in Economics for a purely competitive firm?
When demand for a consumer good is relatively price elastic, in that case: (i) total spending will decline when the price rises. (ii) the demand curve is vertical. (iii) the price of the good is determined through supply alone. (iv) the quantity respo
Pure economic profits are NOT: (w) normal costs of production. (x) reduced to “normal” levels in long-run pure competition. (y) zero in long run monopolistic competition. (z) possible under pure competition in the short-run.
The multiple by which the commercial banking system can increase the supply of money on the basis of each dollar of excess reserves is equal to: A) the reciprocal of the legal reserve ratio. B) 1 minus the legal reserve ratio. C) the reciprocal of the income velocit
When this firm produces 5,000 units of output monthly in this demonstrated figure, in that case its total variable costs equal as: (w) $75,000 per month. (x) $15,000 per month. (y) $18,000 per month. (z) $3,000 per month. Q : Maximum possible economic profit of firm This firm’s maximum possible economic profit equals: (i) $12,000 per period. (ii) $16,000 per period. (iii) $20,000 per period. (iv) $24,000 per period. (v) $28,000 per period. Discover Q & A Leading Solution Library Avail More Than 1448525 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1959194 Asked 3,689 Active Tutors 1448525 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
This firm’s maximum possible economic profit equals: (i) $12,000 per period. (ii) $16,000 per period. (iii) $20,000 per period. (iv) $24,000 per period. (v) $28,000 per period. Discover Q & A Leading Solution Library Avail More Than 1448525 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1959194 Asked 3,689 Active Tutors 1448525 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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