A security characteristic line graphs:

The assumed reinvestment rate for the yield on a zero coupon bond is

On December 31, 2003, Numark Co. leased a machine from Hardie Ltd. for a five-year period. Equal annual payments under the lease are $315,000 (including $15,000 annual executory costs) and are due on December 31 of each year. The first payment was made on December 31, 2003, and the second payment was made on December 31, 2004. The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was $1,251,000. The lease is appropriately accounted for as a capital lease by
Numark. In its December 31, 2004 balance sheet, Numark should report a lease liability of:

Set of portfolios that has the maximum rate of return for every given level of risk is called

What is the difference in the reinvestment income for the following two bonds? Bond 1 is a 6%, 5-year bond, and Bond 2 is a 6%, 10-year bond. Both bonds yield 5%.