When the coupon rate is less than the required rate of return the discount on the bond ______ as maturity approaches.
جب کوپن کی شرح واپسی کی مطلوبہ شرح سے کم ہوتی ہے تو پختگی کے قریب ہوتے ہی بانڈ ______ پر رعایت ہوتی ہے۔
Answer: Decreases
Explanation
This question appeared in
Past Papers (2 times)
Senior Auditor Past Papers and Syllabus (2 times)
This question appeared in
Subjects (1 times)
ACCOUNTING (1 times)
Related MCQs
- What should a company do if the IRR is less than the required rate of return?
- What is the impact of a higher required rate of return on IRR?
- An IRR greater than the required rate of return indicates ____?
- According to the capital--asset pricing model (CAPM), a security's expected (required) return is equal to the risk free rate plus a premium:
- Zero Coupon Bond is also known as ______?
- The labor rate variance is determined by multiplying the difference between the actual labor rate and the standard labor rate by ______?
- What happens to NPV if the discount rate increases?
- Which of the following best describes the discount rate?
- Which of the following best describes the discount rate used in IRR?
- Criterion for IRR (Internal Rate of Return)?