1 Describes the relationship between nominal returns, real returns and inflation
2 The annual coupon payment dividend divided by the current bond price
3 When a company buys back its own shares in an open market or via a tender offer
4 A dividend payment that typically creates a volatility in the dividend payments that may be undesirable for some investors
5 If a firm has a high dividend payout, then it will be using its cash to pay dividends instead of investing in positive npv projects
6 The selling of shares in the appropriate proportion to create an equivalent cash flow to receiving the dividend stream you want
7 Describes the term of the loan when the bond is to be redeemed
8 the interest paid on the bond
9 When a bond is selling at price< Face value (coupon rate
10 The principal amount of a bond that is repaid at the end of the tern
11 A SPECIFIC TYPE OF BOND THAT DOES NOT PAY interest
12 it is a required rate on a bond
13 This is when a dividend announcement is used to communicate information to the shareholders about the company
14 When a bond is selling > at price > Face value ( coupon rate > YTM)
15 Interest Rate or rate of return has been adjusted for inflation

Answer rating: 100% (QA)

1 The relationship between nominal returns real returns and inflation is that nominal returns represent the total percentage return on an investment while real returns adjust for inflation to provide ... View the full answer