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What is the relationship between a bond's market price and its promised yield to maturity? Explain.A bond's market price relies on its yield to maturity abbreviated as YTM. While a bond has a YTM greater as compared to its coupon rate, it sells at a discount from its face value. While the YTM is equal to the coupon rate and market price equals the face value. While the YTM is less as compared to the coupon rate, the bond sells at a premium over face value.
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Letter of Credit (LOC) A popular bank instrument begins that a bank has granted the holder an amount of credit equal to the face amount of the L/C. A bank guarantees payment of
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How does continuous compounding benefit an investor? The effect of enhancing the number of compounding periods per year is to increase the future value of the investment. The
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