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Why is the required rate of return on a bond different than the copoun rate

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7DQ: How does a secured bond differ from an unsecured bond?

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Why is the required rate of return on a bond different than the copoun rate

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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Similar questions

What is the difference between face rate and market rate, and which rate would be higher if a bond is issued at a discount?
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