Question: Bonds are considered fixed income instruments because ________________ . Group of answer choices its yield to maturity is fixed its price is pre-determined its cash

Bonds are considered fixed income instruments because ________________ .

Group of answer choices

its yield to maturity is fixed

its price is pre-determined

its cash flows do not change

the market interest rate remains flat

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1. Label the six phase changes of water on the diagram below (Figure 6.2). Solid Ice Liquid Water Figure 6.2: Phase Changes of Water. (Invisible) Gas Water Vapor

Q:

Question 1 a) Calculate the following ratios for Rio Tinto plc for the year ended 31st December 2019 (20 Marks) 1. Return On Capital Employed 2. Inventory Turnover (stock days) 3. Debtor ratio...

Q:

Calvin and his wife Susie live in Watterson, California which is a moderate sized town between Sacramento and Chico. They have been pretty successful in their financial lives over the years and own a...

Q:

hi, please the question is done, but can someone explain how did you find the number in the answear G- What should Kim ford recommend regarding an investment nike? how did you find the number...

Q:

ABC company bonds have a par value of $1,000, a life of 10 years, and pay 6% coupon interest semiannually. If the yield to maturity of these bonds is 7.0%, what are the bonds worth? Group of answer...

Q:

hi there, i wanna know from the attach case what risks does alibaba face and how will this impact a debt issuance? identify changes in alibaba's capital structure in the period prior to and after the...

Q:

The Behavior of Market Interest Rates: The required return on a bond has three components: the real rate of return (r*), an expected inflation premium (IP), and a risk premium (RP). The behavior of...

Q:

A major disadvantage of the payback period method is it ______ Group of answer choices ignores cash flows beyond the payback period. does not directly account for the time value of money. is useless...

Q:

The Behavior of Market Interest Rates: The required return on a bond has three components: the real rate of return (r*), an expected inflation premium (IP), and a risk premium (RP). The behavior of...

Q:

HW 3: Bond Duration, Convexity and Immunization (Conceptual Questions) The YTM (yield to maturity) of a bond is __________ related to the price of the bond because ___________. Group of answer...

Q:

Repos and fed funds borrowed are examples of purchased liquidity, Group of answer choices True False . Consider the balance sheet for the DI listed below: Assets Liabilities (in millions) 5 25 30 (in...

Q:

Why are the processes used to fabricate particulate composites essentially the same as those used for conventional material?

Q:

After Seattle soda tax, Costco says case of Gatorade costs$26.33 by Jeffry BartashAfter Seattle soda tax, Costco says case of Gatorade costs $26.33instead of $15.99.Discount giant takes novel...

Q:

25. Innovative Medical Devices is a medical devices wholesaler that commenced business on June 1, 20X1. The company purchases merchandise for cash and on open account. In June 20X1, Innovative...

Q:

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...