Bond Return Calculator Which Is It?

Which is it? - bond return calculator

# A person who shares in a company (ie), an investor has in fact part of the company.



a. TRUE

b. Wrong
# The coupon of a bond is the same as the rate of a bond. That changes in interest rates in the economy, the discount rate, which in turn also changes the value of the bond will change.



a. TRUE

b. Wrong
# In view of the debts that are uniform in all societies are different types of shares and company is very creative in the design of the new capital and unique.



a. TRUE

b. Wrong
# The Government of the Mont-ECAR Netherlands has issued a $ 1,000 loan with a nominal rate of $ 150 per year, but the link is not ready to 1,000,000,000,000 years. If the required return for investors in this bond is 15 percent, we can calculate the market price is expected from this link, and if so, what is the expected price in the market?



a. Yes, it is expected a market price that the calculationD, but the only way is to use a large computer, providing an added value, 1,000,000,000,000 current interest payments of $ 150 each and the present value of the nominal value of the obligation.

b. No, because all investors today die before maturity.

c. Yes, this is the current value of the obligation rounding error to zero, because with 15% discount for 1000000000000 years almost any quantity is reduced to zero.

d. No, because the computer will not accept is 1000000000000 for the number of periods of membership and 1,000,000,000,000 years on any map of discount factors.

e. Yes, because the discount of 15% corresponds to the discount rate by 15%, the trading obligations of $ 1,000.

1 comments:

Anonymous said...

1. TRUE. Investors Capital is part owner of a company. Imagine a shareholder of General Electric, he or she is part owner of the company through their participation.

2. False Declaration, see previous answer.

3. False: There are several types of bonds Bonds with floating rate () that is unsecured, junk bonds and so on.

4. Point 4 is E See previous discussion on the bond.

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