What issues should one be careful of when calculating the bond price from its yield to maturity using the "time value of money" (TVM) keys of a financial calculator?
What will be an ideal response?
Answer: It is quite simple to transfer the bond cash flow timeline to a financial calculator. Care has to be taken when using the TVM keys in understanding that the last cash flow, i.e., the return of principal by the issuer, is automatically augmented by the last coupon payment and no special steps are needed for that.
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A buyer sued a real estate salesperson for fraud in a real estate transaction and received a judgement in the amount of $15,000. The salesperson owns a cabin in Georgia valued at $10,000, free and clear. For the buyer to file a claim against the Real Estate Education, Research, and Recovery Fund he must:
A. Inform the Real Estate Commission about the property the sales person owns so the Commission may take legal action. B. File a lien on the property in the amount of $10,000. C. Present the judgement to the Real Estate Commission for $ 15,000. D Have a property levied upon,and file a claim against the Real estate Education, research, and Recovery Fund for the balance remaining to satisfy the judgement.
A property and casualty insurer in which the salesperson is an employee of the insurer, not an independent contractor, is called a
A) fraternal insurance company. B) risk retention group. C) direct writer. D) captive insurance company.