If a bond is selling for its face value, which of the following statements is true?...
If a bond is selling for its face value, which of the following statements is true?
a. The coupon rate and the yield to maturity are the same
b. The par value is less than the face value
c. This is only possible if this is a zero coupon bond
d. all of the statements above are true
Homework Answers
a. The coupon rate and the yield to maturity are the same
When price of the bind is equal to the par value, coupon rate will always be equal to the yield to maturity. The price will be eual to the face value because coupons and the face value are being discounted at the same yield to maturity.
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If a bond is selling for its face value, which of the following
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If a bond is selling at a premium (i.e., at a price more than its face value), which of the following is true? Interest rates must have gone up since the bond was issued. The coupon rate is higher than the yield to maturity. The bond must be a zero-coupon bond. The coupon rate is lower than the yield to maturity. The bond must have been issued by the U.S. Treasury.
The par value of a bond is less than its current price. Which one of the...
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
Question 1 6 pts A 4.25% coupon rate bond...
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yield (sold for) $588,000 in the market. Which of the following is
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2. Which of the following is a true statement?
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Assume a bond with a face value of $600,000 was issued to yield (sold for) $588,000 in the market. Which of the following is true...
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
Question 1 6 pts A 4.25% coupon rate bond...
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For a bond to sell at a discount, which of the following scenarios must be true? coupon rate is less than yield to maturity coupon rate is greater than yield to maturity none of the above options is correct coupon rate and yield to maturity are the same
1. Assume a bond with a face value of $600,000 was issued to
yield (sold for) $588,000 in the market. Which of the following is
true on the issue date?
2. Which of the following is a true statement?
3. Which of the following is not considered one of the four most
common financial statements?
Assume a bond with a face value of $600,000 was issued to yield (sold for) $588,000 in the market. Which of the following is true...
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