PLEASE ANSWER THE CORRECT ANSWERS IF YOU ARE SURE OF IT. 1. Which of the followi
ID: 2804865 • Letter: P
Question
PLEASE ANSWER THE CORRECT ANSWERS IF YOU ARE SURE OF IT.
1. Which of the following statement is true?
The yield to maturity on a premium bond exceeds the bond's coupon rate.
The higher the yield to maturity, the lower the current price of the bond.
The coupon rate is the coupon payment divided by the current price of the bond.
The regular interest payment of a bond is called the coupon payment
2. Which of the following statement is true?
Dividend growth rate is equivalent to dividend yield.
Assume a constant annual dividend. If there is a decline in the stock's price, the dividend yield increases.
The benchmark PE ratio can be used to value the stock of firms that pay no dividends.
Assume a constant dividend growth. Increase in the capital gains yield will increase the current value of a stock.
Explanation / Answer
1)
a) False, its the opposite for premium bond
b) False ,it also depends on coupon rate
c) False , it is called current yield
d) True
2)
a) False , it is the dividend divided by market price of stock
b)True
c) False ,Not necessarily
d) It might be because of dividend growth
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