Presuming market rates remain constant during the life of a bond, the yield to maturity consists...
Presuming market rates remain constant during the life of a bond, the yield to maturity consists solely of interest income if:
Group of answer choices
the bond is a zero coupon bond.
the bond was purchased at par.
the bond was purchased above par.
the bond was purchased below par.
Homework Answers
the bond was purchased at par.
If Bond is purchased at par, coupon rate equals yield to maturity, so YTM only has interest income and capital gain yield is zero.
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Presuming market rates remain constant during the life of a
bond, the yield to maturity consists...
If interest rates did not change from now until this bond's maturity,a bond with a yield...
If interest rates did not change from now until this bond's maturity,a bond with a yield of 7% and a coupon rate of 8% would: Group of answer choices: A) it would not be trading at all since the coupon does not equal the yield in the market. B) trade at a discount right now. Its price would gradually increase until it reaches par at maturity. C) trade at par. D) trade at a premium right now. Its price would...
In order to have a yield to maturity greater than the coupon rate, the bond must be:
In order to have a yield to maturity greater than the coupon rate, the bond must be:Group of answer choicesselling at a discount.selling at par.selling at a premium.a zero coupon bond.
Yield to maturity a spreadsheet.) The bond shown in the following table pays interest annually. (Click...
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37. Consider a five-year bond with a 10% coupon that has a present yield to maturity...
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Check My Work eBook Problem 5-15 Yield to Cal, Yield to Maturity, and Market Rates Absalom Motors' 15% coupon rate, semiannual payment, $1,000 par value bonds that mature in 20 years are callable 4 years from now at a price of $750. The bonds sell at a price of $1,300, and the yield curve is flat Assuming that interest rates in the economy are expected to remain at their current level, what is the best estimate of the nominal interest...
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when the coupon the All else constant, a bond will sell at yield to maturity a...
when the coupon the All else constant, a bond will sell at yield to maturity a premium; less than a premium; equal to a discount; less than D. a discount; higher than par; less than с. 4 The Walthers Company has a semi-annual coupon bond outstanding tanding. An increase in the market rate of interest will have which of the following effects which of the following effects on the bond? increase the coupon rate decrease the coupon rate increase the...
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Yield to maturity a spreadsheet.) The bond shown in the following table pays interest annually. (Click on the icon here in order to copy the contents of the data table below into Coupon interest rate Years to maturity Par value $1,000 Current value $1,230 a. Calculate the yield to maturity (VTM) for the bond b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain a. The...
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when the coupon the All else constant, a bond will sell at yield to maturity a premium; less than a premium; equal to a discount; less than D. a discount; higher than par; less than с. 4 The Walthers Company has a semi-annual coupon bond outstanding tanding. An increase in the market rate of interest will have which of the following effects which of the following effects on the bond? increase the coupon rate decrease the coupon rate increase the...
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