--%>
Assignment Help - homework help

Describe relationship among a bonds market price

Describe relationship among a bond's market price and its promised yield to maturity? Describe.
A bond's market price based on its yield to maturity (YTM). While a bond has YTM greater than its coupon rate, it sells at discount from its face value. While the YTM is equivalent to the coupon rate, the market price equals the face value. While the YTM is less than the coupon rate, the bond sells at a premium over face value.

   Related Questions in Finance Basics

  • Q : Describe Modigliani and Miller theory

    Describe Modigliani and Miller theory of dividends? Describe. The Modigliani-Miller theory of dividends says which dividend theory is irrelevant. They claim that it is the income generated by assets that is significant, not how funds are distr

    		•
  • Q : Externally held public debt and

    Normal 0 false false

  • Q : What is Local Assistance Local

    Local Assistance (LA): The character of expenditures prepared for the support of local government or other locally administered actions.

    		•
  • Q : Contrast prescribed benefit and

    Compare and contrast a prescribed benefit and contribution pension plan.In a prescribed benefit plan, retirement benefits are determined by a formula that typically considers the worker's age, salary, and years of service.  The employee and

    		•
  • Q : Near-term policy Normal 0 false false

    Normal 0 false false

  • Q : Influence of working capital in the

    How and why does working capital influence the incremental cash flow estimation for a proposed large capital budgeting project? Describe. Several large projects need additional working capital. This investment in additional working capital bec

    		•
  • Q : Define Allocation Allocation : The

    Allocation: The distribution of funds or costs from one account or misuse to one or more accounts or appropriations (example, the allocation of employee compensation funding from the statewide 9800 Budget Act items to the departmental Budget Act items

    		•
  • Q : Mergers encourage the formation of new

    Do mergers encourage the formation of new banks? Yes. The increase in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the similar period. A study conducted through the Federal Reserve Bank of

    		•
  • Q : What are Staff Benefits Staff Benefits

    Staff Benefits: It is an object of expenditure symbolizing the state costs of contributions for employee’s retirement, health benefits, OASDI, and non-industrial disability leave advantages.

    		•
  • Q : Describe significance of excess reserves

    Normal 0 false false