When the required rate of return is less than the coupon rate the premium on the bond-

Related MCQs

• If risk free rate of return is 8%, Return on market portfolio is 12%, beta = 1.5, then the expected rate of return according to CAPM is equal to
• You are considering two mutually exclusive investment proposals, project A and project B. B's expected value of net present value is $1,000 less than that for A and A has less dispersion. On the basis of risk and return, you would say that
• The bond yield plus risk premium approach is a method of finding out the cost of
• ----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return
• In case of risky projects the required rate of return would generally be-
• If the Real rate of return is 10% and Inflation s Money Discount Rate is:
• The common stock of a company must provide a higher expected return than the debt of the same company because
• Accountng rate of return is based on _____________
• Real rate of return is equal to:
• Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as: