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Question 19 (Mandatory) (0.5 points) A bond's current yield is defined as: the bond's annual...
Question 25 (Mandatory) (3.2 points) Which of the following is most correct? O In an efficient...
Question 25 (Mandatory) (3.2 points) Which of the following is most correct? O In an efficient market, investors will sell overvalued stock which will drive its price down. In an efficient market, investors will sell undervalued stock which will drive its price down. O In an efficient market, investors will buy overvalued stock which will drive its price down. None of these statements is correct. Question 14 (Mandatory) (3.2 points) Saved A bond's current yield is defined as: O the...
Question 23 (Mandatory) (0.5 points) Calculate the price of a zero coupon bond that matures in...
Question 23 (Mandatory) (0.5 points) Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6 percent. (Assume semi-annual compounding and $1,000 par value.) O $553.68 $558.66 O $940.00 O $1,000.00 Question 24 (Mandatory) (0.5 points) What's the current yield of an 8.15 percent coupon corporate bond quoted at a price of 94.30? 08.64 percent 8.15 percent 8.01 percent 4.30 percent Question 25 (Mandatory) (0.5 points) Consider a 3.75 percent TIPS...
Question 26 (Mandatory) (0.5 points) A 4.25 percent coupon bond with eight years left to maturity...
Question 26 (Mandatory) (0.5 points) A 4.25 percent coupon bond with eight years left to maturity is offered for sale at $983.36. What yield to maturity is the bond offering? (Assume interest payments are paid semi-annually and par value is $1,000.) 4.50 percent 2.25 percent Oo oo 4.25 percent 2.36 percent Question 27 (Mandatory) (0.5 points) Possible shapes for the yield curve include all of the following EXCEPT: vertical line. upward sloping. humped horizontal line. Question 28 (Mandatory) (0.5 points)...
Question 4: (10 points). (Yield to maturity) A bond's market price is $950. It has a...
Question 4: (10 points). (Yield to maturity) A bond's market price is $950. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 28 years? What if it matures in 7 years? (Round to two decimal places.) The bond's yield to maturity...
A bond with a current yield of 7.41 percent is quoted at 104.122. What is the...
A bond with a current yield of 7.41 percent is quoted at 104.122. What is the coupon rate of the bond:? Multiple Choice Ο 772% Ο 733% Ο 7.20% Ο 760% Ο 8239% A bond with 16 years to maturity and a semiannual coupon rate of 5.92 percent has a current yield of 5.59 percent. The bond's par value is $2,000. What is the bond's price? Multiple Choice $1888.51 Ο 5206903 Ο $2.0820 οοο Ο Ο Ο $2.204 150 52...
(Yield to maturity) A bond's market price is $750
(Yield to maturity) A bond's market price is $750. It has a $1,000 par value will mature in 8 years, and has a coupon interest rate of 9 percent annual interest, but makes its interest payments semiannually What is the bonds yield to maturity? What happens to the bond's yield to maturity if the bond matures in 16 years? What if it matures in 4 years? a. The bond's yield to maturity if it matures in 8 years is _______ %....
1. What is the bond's yield to maturity? 2. What happens to the bond's yield to...
1. What is the bond's yield to maturity?
2. What happens to the bond's yield to maturity if the bond
matures in 20 years?
3. What if it matures in 5 years?
(Yield to maturity) A bond's market price is $1,200. It has a $1,000 par value, will mature in 10 years, and has a coupon interest rate of 11 percent annual interest, but makes its interest payments semiannually. What is the bonds yield to maturity? What happens to the...
Which of the following is a reason municipal bonds offer lower rates of interest income for...
Which of the following is a reason municipal bonds offer lower rates of interest income for their investors? Select one: A. They are able to avoid interest rate risk. B. They are tax exempt - at least at the federal level. C. They are able to offer reduced credit risk as they are backed by the federal government. D. They are able to avoid reinvestment rate risk. A two-year Treasury security currently earns 5.25 percent. Over the next two years,...
Question 45 (Mandatory) (0.5 points) Which of the following is the concept and procedure for combining...
Question 45 (Mandatory) (0.5 points) Which of the following is the concept and procedure for combining securities into a portfolio to minimize risk? Modern portfolio theory Firm specific theory Optimal portfolio theory Total portfolio theory Question 46 (Mandatory) (0.5 points) Rx Corp. stock was $60.00 per share at the end of last year. Since then, it paid a $1.00 per share dividend last year. The stock price is currently $62.50. If you owned 400 shares of Rx, what was your...
Question 12 (0.5 points) A bond's sensitivity to changes in market interest rates decreases when the:...
Question 12 (0.5 points) A bond's sensitivity to changes in market interest rates decreases when the: I. time to maturity increases. 1I. time to maturity decreases. 1I. coupon rate increases. IV. coupon rate decreases.
Question 25 (Mandatory) (3.2 points) Which of the following is most correct? O In an efficient market, investors will sell overvalued stock which will drive its price down. In an efficient market, investors will sell undervalued stock which will drive its price down. O In an efficient market, investors will buy overvalued stock which will drive its price down. None of these statements is correct. Question 14 (Mandatory) (3.2 points) Saved A bond's current yield is defined as: O the...
Question 23 (Mandatory) (0.5 points) Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6 percent. (Assume semi-annual compounding and $1,000 par value.) O $553.68 $558.66 O $940.00 O $1,000.00 Question 24 (Mandatory) (0.5 points) What's the current yield of an 8.15 percent coupon corporate bond quoted at a price of 94.30? 08.64 percent 8.15 percent 8.01 percent 4.30 percent Question 25 (Mandatory) (0.5 points) Consider a 3.75 percent TIPS...
Question 26 (Mandatory) (0.5 points) A 4.25 percent coupon bond with eight years left to maturity is offered for sale at $983.36. What yield to maturity is the bond offering? (Assume interest payments are paid semi-annually and par value is $1,000.) 4.50 percent 2.25 percent Oo oo 4.25 percent 2.36 percent Question 27 (Mandatory) (0.5 points) Possible shapes for the yield curve include all of the following EXCEPT: vertical line. upward sloping. humped horizontal line. Question 28 (Mandatory) (0.5 points)...
Question 4: (10 points). (Yield to maturity) A bond's market price is $950. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 28 years? What if it matures in 7 years? (Round to two decimal places.) The bond's yield to maturity...
A bond with a current yield of 7.41 percent is quoted at 104.122. What is the coupon rate of the bond:? Multiple Choice Ο 772% Ο 733% Ο 7.20% Ο 760% Ο 8239% A bond with 16 years to maturity and a semiannual coupon rate of 5.92 percent has a current yield of 5.59 percent. The bond's par value is $2,000. What is the bond's price? Multiple Choice $1888.51 Ο 5206903 Ο $2.0820 οοο Ο Ο Ο $2.204 150 52...
1. What is the bond's yield to maturity?
2. What happens to the bond's yield to maturity if the bond
matures in 20 years?
3. What if it matures in 5 years?
(Yield to maturity) A bond's market price is $1,200. It has a $1,000 par value, will mature in 10 years, and has a coupon interest rate of 11 percent annual interest, but makes its interest payments semiannually. What is the bonds yield to maturity? What happens to the...
Which of the following is a reason municipal bonds offer lower rates of interest income for their investors? Select one: A. They are able to avoid interest rate risk. B. They are tax exempt - at least at the federal level. C. They are able to offer reduced credit risk as they are backed by the federal government. D. They are able to avoid reinvestment rate risk. A two-year Treasury security currently earns 5.25 percent. Over the next two years,...
Question 45 (Mandatory) (0.5 points) Which of the following is the concept and procedure for combining securities into a portfolio to minimize risk? Modern portfolio theory Firm specific theory Optimal portfolio theory Total portfolio theory Question 46 (Mandatory) (0.5 points) Rx Corp. stock was $60.00 per share at the end of last year. Since then, it paid a $1.00 per share dividend last year. The stock price is currently $62.50. If you owned 400 shares of Rx, what was your...
Question 12 (0.5 points) A bond's sensitivity to changes in market interest rates decreases when the: I. time to maturity increases. 1I. time to maturity decreases. 1I. coupon rate increases. IV. coupon rate decreases.
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