Dividens and Price

Dividens and Price - future investment Most bonds however...

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Federico Nusymowicz Lecture 21 Assignment A bond yield refers to the dividends paid by the bond – in essence, the owner of a bond is a part owner of the company, and as such is entitled to a portion of the company’s profits, paid in the form of dividends. This is the bond’s yield. Some bonds at times choose not to pay yields, instead keeping profits in the form of retained earnings for
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Unformatted text preview: future investment. Most bonds, however, pay dividends at some point or another. A bond’s price refers to the going price for the transfer of the ownership of a bond from a seller to a buyer. The buyer, after paying the price, possesses ownership and is entitled to the dividends paid out by the company, while also being able to resell the bond itself....
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This note was uploaded on 06/26/2008 for the course ECON S-10ab taught by Professor Medoff during the Summer '07 term at Harvard.

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