Explain Why the Expected Return of a Corporate Bind Does

question 15

Essay

Explain why the expected return of a corporate bind does not equal its yield to maturity?

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Definitions:

Straight Rebuy

A buying situation in which a business customer signals its satisfaction by agreeing to purchase the same product at the same price.

Continual Buy

Ongoing purchasing actions by consumers for products or services, often due to brand loyalty or satisfaction.

Copy Paper

Standard-sized, thin paper generally used for writing, printing, and photocopying in office and school environments.

Derived Demand

A demand for a commodity, service, or good that arises from the demand for another good or service, for example, the demand for steel being driven by the demand for automobiles.