Matching Next year's dividend divided by the stock price A general term for the interest rate...

Matching

Next year's dividend divided by the stock price
A general term for the interest rate used to find the PV of cash flows
The principal amount on a bond, repaid at maturity, usually $1,000
Annual interest paid divided by the face value on a bond.
Market discount rate used to find a bond's price. Changes with market conditions
Measures bond interest rates at different maturity dates
Document that governs the legal obligations on a bond
The return from the growth in the stock price over time
Price at which a dealer is willing to buy a bond or stock.
Bond lacking collateral
Additional yield to account for the credit quality of bond

A.	Indenture
B.	Dividend yield
C.	Yield-to-maturity (YTM)
D.	Bid price
E.	Dividend coupon
F.	Debenture
G.	Default risk premium

H.	Face Value
I.	Coupon rate
J.	Capital gains yield
K.	Ask price
L.	Discount rate
M.	Yield curve
N.	Interest rate schedule

Expert Solution

Matching	ANSWERS:
Next year's dividend divided by the stock price	B.	Dividend yield
A general term for the interest rate used to find the PV of cash flows	L.	Discount rate
The principal amount on a bond, repaid at maturity, usually $1,000	H.	Face Value
Annual interest paid divided by the face value on a bond.	I.	Coupon rate
Market discount rate used to find a bond's price. Changes with market conditions	C.	Yield-to-maturity (YTM)
Measures bond interest rates at different maturity dates	M.	Yield curve
Document that governs the legal obligations on a bond	A.	Indenture
The return from the growth in the stock price over time	J.	Capital gains yield
Price at which a dealer is willing to buy a bond or stock.	D.	Bid price
Bond lacking collateral -----------------no close matching		Higher interest rates due to lack of collateral, to recover , in the event of default
Additional yield to account for the credit quality of bond	G.	Default risk premium

jeff jeffy answered 1 year ago

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