The par value of a bond is less than its current price. Which one of the following applies to this bond?
--the answer for #1 I got was $44.21 decrease & it was incorrect.
The par value of a bond is less than its current price. Which one of the following applies to this bond?
--- I put yeild to maturity is greater than the coupon rate & that was incorrect
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The par value of a bond is less than its current price. Which
one of the...
A bond which is valued at par has a yeild to maturity which is ____ its...
A bond which is valued at par has a yeild to maturity which is ____ its coupon rate ? A. equal to B. greater than C less than D. none of the above
Which one of the following relationships applies to a par value bond? Multiple Choice Yield to maturity > Current y...
Which one of the following relationships applies to a par value bond? Multiple Choice Yield to maturity > Current yield > Coupon rate Coupon rate > Yield to maturity > Current yield Coupon rate = Current yield = Yield to maturity Coupon rate < Yield to maturity < Current yield Coupon rate > Current yield > Yield to maturity
For a discount bond, its coupon rate is_ than its yield to maturity and its price...
For a discount bond, its coupon rate is_ than its yield to maturity and its price is expected to __over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A corporate bond has a 30-year maturity and pays interest annually. The quoted coupon rate is 10% and the bond is priced at par. The boond is callable in 5 years at 120% of par. What is the bonds yield to call? (Choose the closest one)...
4.Which one of the following statements about the approach to bond pricing is NOT true? Select...
4.Which one of the following statements about the approach to bond pricing is NOT true? Select one: A. To calculate a bond's price, one needs to calculate the present value of the bond's expected cash flows. B. The value, or price, of any asset is the future value of its cash flows. 6.Which one of the following statements is NOT true? Select one: A. The yield to maturity of a bond is the discount rate that makes the present value...
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures...
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a 584.52 discount from par value. The approximate yield to maturity on this bond is A6% B. 7% C. 8% D. 9% For a discount bond, its coupon rate is_than its yield to maturity and its price is expected to ___over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A...
1a) You just learned from your sister that you can buy a $1,000 par value bond...
1a) You just learned from your sister that you can buy a $1,000 par value bond for $800. The coupon rate is ten percent (paid annually), and there are ten years left until the bond matures. You should purchase the bond if your require twelve percent return on bonds with this similar risk level. True/False? 1b) A corporate bond with ten years to maturity has an annual coupon rate of six percent. The bond today is selling for $1,000. With...
1. What is the current price of a $1000 par value bond if has 12.5 years...
1. What is the current price of a $1000 par value bond if has 12.5 years until maturity, a YTM of 6.6%, and a coupon rate of 6% with semi-annual coupon payments? 2.The bonds of Lapeer Airlines, Inc., are currently trading on the market at $1,119.34. They have a par value of $1000, make semi-annual coupon payments with a coupon rate of 6.4%, and a YTM of 4.6%. How many years until these bonds mature? 3.You have decided to try...
Which of the following statements is CORRECT? A bond's current yield must always be either equal...
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in 2016, a semiannual coupon bond that matures in 2036 and has a $1000 par value traded at $1070. its par value is $1000...
in 2016, a semiannual coupon bond that matures in 2036 and has a $1000 par value traded at $1070. its par value is $1000 and its coupon rate is 6%. in 2017, the yield to maturity on the bond is 2% less than a year ago. what is the price for the bond in 2017?
If its yield to maturity is less than its coupon rate, a bond will sell at...
If its yield to maturity is less than its coupon rate, a bond will sell at a _____, and increases in market interest rates will _____ . discount; decrease this discount discount; increase this discount premium; decrease this premium premium; increase this premium
For a discount bond, its coupon rate is_ than its yield to maturity and its price is expected to __over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A corporate bond has a 30-year maturity and pays interest annually. The quoted coupon rate is 10% and the bond is priced at par. The boond is callable in 5 years at 120% of par. What is the bonds yield to call? (Choose the closest one)...
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a 584.52 discount from par value. The approximate yield to maturity on this bond is A6% B. 7% C. 8% D. 9% For a discount bond, its coupon rate is_than its yield to maturity and its price is expected to ___over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A...
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