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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Industrial Metals purchases land, building, and equipment together for $1.2 million. The estimated fair values of the land, buildings, and equipment are $500,000, $800,000, and $200,000, respectively.
Answers (1)
What single overriding concern has defined the evolution of Apple and determines its success?
Answers (1)
Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash disbursements during August.
Answers (1)
Allison Corp. has just issued preferred stock with an annual dividend of $0.85. The preferred stock is currently selling for $18.75 per share. What is the annual yield or return (r) on this preferred stock?
Answers (1)
Under a perpetual inventory system, when a shortage is discovered a. Merchandise Inventory is debitedb. Cost of Merchandise Sold is creditedc. Inventory Shortages is creditedd. Merchandise Inventory is credited
Answers (1)
New Questions in Business
All of the following are examples of facility level costs except: Select one: a. Costs of cleaning the workplace. b. Costs of custodial work. c. Costs of personnel support. d. Costs of receiving shipments. e. Costs of providing electricity.
Answers (1)
The law of supply states that a. as prices rise, so will supply and vice versa. b. as prices fall, supply will rise and vice versa. c. as prices rise, supply will fall and vice versa. d. as prices rise, supply will stabilize and vice versa.
Answers (1)
Harold and Zack have pooled their money together to buy real estate but have filed no formal papers toform a business. Harold, a lawyer, handles all the legal matters and Zack, a real estate broker, finds buyers for the property they have subdivided.
Answers (1)
On March 1, Marin sold merchandise on account to Amelia Company for $22,400, terms 2/10, net 45. On March 6, Amelia returns merchandise with a sales price of $1,200. On March 11, Marin receives payment from Amelia for the balance due.
Answers (1)
Predict weekly gross revenue (in dollars) for a week when $3,600 is spent on television advertising and $1,800 is spent on newspaper advertising. (Round your answer to the nearest cent.)
Answers (1)