true or false: the coupon rate on a bond measures the investors return on their investment.
true or false: the coupon rate on a bond measures the investors return on their investment.
29) The rate of return required by investors in the market for owning a bond is called the: a) Coupon. b) Face value. c) Maturity d) Yield to maturity. e) Coupon rate.
True or False? 1. Dividend yield measures the rate of return on the market price of a share. True or False? 2. The dividend payout ratio measures the percentage of profit paid out in dividends to ordinary shareholders. True or False? 3. Dividend per share is the ratio to use when comparing income from shares with income yield from alternative investments. True or False? 4. Dividend yield is an important ratio for an investor who is acquiring shares mainly for...
23) For a coupon bond, its rate of return will NOT be dependent on the: _______. A) reinvestment opportunities B) frequency of coupon payments C) yield to maturity D) time period of investment 24) The yield curve for U.S. government notes and bonds: _______. A) is always positive since inflation cannot be measured B) is not dependent on government deficits or surpluses C) indicates a rate of return required by investors D) shows the approximate coupon rate for...
Return on investment measures the profitability of an investment center but not the efficiency in using its assets. True False
QUESTION 12 Three measures of investment center performance are income from operations, rate of return on investment, and residual income. True False QUESTION 13 If divisional income from operations is $100,000, invested assets are $850,000, and the minimum rate of return on invested assets is 8%, the residual income is $68,000. True False QUESTION 14 A decentralized business organization is one in which all major planning and operating decisions are made by top management True False QUESTION 15 Click Save...
hi, could you please simply answer these as true or false 8) A Zero-coupon bond pays no coupon for the 1st half of the bond life. _ 9) Flotation Costs decrease the cost of capital for a firm. 10) The rate of return for Preferred Stock is reduced by the tax rate of the firm. 11) Preferred Stock has characteristics of both bonds and common stock. 12) Cumulative feature of Preferred Stock generally allows for voting provisions if a dividend...
hi, could you please simply answer these as true or false 8) A Zero-coupon bond pays no coupon for the 1st half of the bond life. _ 9) Flotation Costs decrease the cost of capital for a firm. 10) The rate of return for Preferred Stock is reduced by the tax rate of the firm. 11) Preferred Stock has characteristics of both bonds and common stock. 12) Cumulative feature of Preferred Stock generally allows for voting provisions if a dividend...
The coupon rate on a bond typically adjusts as the state of the economy changes. True or False?
true or false: as the bond yield increases, the bond becomes more valuable to the investors and therefore, the price increases.
Three investors invest in the same 10-year 8% annual coupon bond. They bought the bond at the same price ($85.503075 for a par value of $100) and at the same time. A is a buy-and-hold investor (hold till maturity), B will sell the bond after four years, and C will sell the bond after seven years. What is the yield to maturity of this bond? For each of these three investors, find the total cash flow (in dollar amount) at...