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Relationship between required rate of return and coupon rate on the value of a bond?
Wiki User
∙ 11y ago
required rate of return is the 'interest' that investors expect from an investment project.
coupon rate is the interest that investors receive periodically as a reward from investing in a bond
Wiki User
∙ 11y ago
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Difference enters bond's coupon interest rate the current yield y bond-holder's required rate of return?
Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return?
If Cabell Corp bonds pay an annual coupon rate of 10 percent and the investors required rate of return is now 8 percent on these bonds what will be the price?
par value
What happens when you get negative market returns can you use that to compute the required rate of return using CAPM?
A negative market return means that there has been a loss on investments because stocks have gone down. CAPM is a model that describes the relationship between risk and expected return and could be used to try to foresee negative market returns.
Explain why a characteristic of an efficient market is that investments in that market have zero NPVs?
On average, the only return that is earned is the required return-investors buy assets with returns in excess of the required return (positive NPV), bidding up the price and thus causing the return to fall to the required return (zero NPV); investors sell assets with returns less than the required return (negative NPV), driving the price lower and thus the causing the return to rise to the required return (zero NPV).
What is risk return relationship?
The risk return relationship is a business concept referring to the risk involved in exchange for the amount of return gained on an investment. These two factors are directly proportional to each other, meaning the more return sought, the higher the risk that is undertaken.
Show the relationship between required rate of return and coupon rate on the value of a bond?
bal amar pel
What is the relationship between wacc and discount rate of return?
relationship between WACC and required rate of return.
What is the difference between yield and coupon rate?
The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
Difference enters bond's coupon interest rate the current yield y bond-holder's required rate of return?
Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return?
Relationship btwn an investor's required rate of return and value of security?
Relationship btwn an investor's required rate of return and value pf security
Relationship between risk and return?
risk is pre-stage for return...
Calculate the value of a 100 debenture in perpetuity the debenture pays a coupon rate of 11 percent and the required rate of return is 9 percent per year?
122.22
When it comes to investing what is the usual relationship between risk and reward?
When it comes to investing, one general relationship between risk and reward is that taking more risk is associated with a greater return. However, in many cases there is no relationship between the two. For example, even though stocks tend to have a higher return than bonds, taking that risk does not guarantee a better return.
Is there any relationship between return on equity and dividend yield?
if there is no growth in a firm the return of equity is equal to the dividend yield
If Cabell Corp bonds pay an annual coupon rate of 10 percent and the investors required rate of return is now 8 percent on these bonds what will be the price?
par value
What is the meaning of the word nationality?
The nationality of a person is a legal relationship between the person and a country. The person falls under certain regulations and is required to complete certain duties and receives rights, protection and benefits in return.
When you purchase an item with a coupon then return the item should the retailer give back the full shelf price or just what you pay and does he keep the coupon or return it to the buyer?
He gives you back the price you paid for and keeps the coupon because you can't use it anymore.
