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How can bonds issued by two companies paying same contractual interest rate be issued at different prices?
To calculate present value of the bond you also need to know market interest rate. If , for example these companies were issuing their bonds in the different time and market interest rate was different then bond could be sold at premium(the bond will cost more then its face value), par (same as face value), and discount (bond will cost less then face value.)
What is the definition of outright investment?
By definition, "outright investment means the same as "buying outright." This is an investment strategy that involves purchasing an investment with liquid resources, such as cash on hand.
What is usually a better investment- a coupon bond or discount bond?
Coupon bond= pay $A now. receive future periodic coupon and at maturity receive face value Discount bond= pay $B now. receive nothing until maturity where you receive face value. B is always less than A. That is, you pay less upfront investing in Discount Bond compared to Coupon Bond. But, you don't receive periodic cash flow by investing in Discount Bond. So clearly which is better depends on how much money you have at present and your expectation of future interest rate (going up or down). If you expect interest rate/yield to go down in the future, then clearly you don't want to be sitting on a pile of money and earn meager interest on it. This is called re-investment risk. You risk having unfavorable interest rate to re-invest the cash flow (coupon) you'll get in future. In this case, locking in the current interest rate/yield by buying discount bond is preferable. The same logic apply if you expect interest rate/yield is going to rise, in which case buying a coupon bond is preferable since you can re-invest the cash flow (coupon) you'll get in future at a higher rate. You can't do so with Discount Bond coz you receive no payment and the interest/yield is locked.
Exports have the same effect on the current size of GDP as?
Investment
How does inflation affect investment?
The inflation affects the investment indirectly when read with the return. Example if an investment provides a return of 6%, and the inflation during the same period is 5%, the investment in real terms increases only by 1% and not by 6%, as inflation eats away returns to the tune of 5%.
Is the face value of a financial instrument the same as its principal amount?
Yes, the face value of a financial instrument is the same as its principal amount.
Is a Scottish pound note worth the same as an English pound note?
The face value of a Scottish banknote is exactly the same as the face value of the same denomination of English banknote.
Which digit have the same face value and place value in 76085493?
digit 0
Is the irr the same as the discount rate?
No, the Internal Rate of Return (IRR) is not the same as the discount rate. The IRR is a metric used to evaluate the profitability of an investment, while the discount rate is the rate used to discount future cash flows to their present value.
Which digit have the same place value facevalue in 76085493?
In the number 76085493, the digit 6 has the same place value and face value. Both its place value and face value are 6, as it is in the millions place. No other digit in this number shares this characteristic.
What is the value for required rate of return?
The value of the required rate of return would be the same percentage. The investment will not be purchased by a buyer if the percentage is not fixed, solidifying the rate of return when the investment is sold. The value may be more, however, but not less.
What is the face value of silver us pre1965 coins?
The FACE value is the same as all other US coins set by the denomination.
What is the difference between face value and intrinsic value of money?
face value is the value written on the coin(currency),and intrinsic value is one which when the same coin is melted and that metal is sold the cost of that. before tuglak's rule the face value of the currency was equal to intrinsic value in india.
What is the difference between compounding and discounting?
Compounding finds the future value of a present value using a compound interest rate. Discounting finds the present value of some future value, using a discount rate. They are inverse relationships. This is perhaps best illustrated by demonstrating that a present value of some future sum is the amount which, if compounded using the same interest rate and time period, results in a future value of the very same amount.
Which one is bigger from km or km?
At face value they are both the same
Which digit in 3925758 has the same face and place value?
The place value of a digit is its face value multiplied by its place column value (1, 10, 100, etc). To have the same place value and face value, the place column value must be 1 - the units column (immediately before the decimal point). Thus it is the last digit of a whole number, which in this case is the '8'.
If a number has a two of the same digits why does each four have a different value?
The value of a digit depends on its position as well as its face value.
