Features of a bond includes: A.Principal value, maturity value, face value, and par value B. Principal...
Features of a bond includes: A.Principal value, maturity value, face value, and par value B. Principal value, debt value, maturity value, face value C. Par value, discounted value, face value, maturity value D. Face value, debt value, par value, maturity value
Homework Answers
Option C is correct
Par value, discounted value, face value, maturity value
Par value and face value are same,
Discounted value is present value of bond.
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Features of a bond includes: A.Principal value, maturity value,
face value, and par value B. Principal...
What is a bond? What is face/principal value? What is maturity value? What is stated interest...
What is a bond? What is face/principal value? What is maturity value? What is stated interest rate? What the types of bonds and be able to define each one? What is a bond issued at premium, at discount or par (face) value mean? What is market interest rate? What is maturity date? Why do investors buy bonds? What is leverage? What is debt-to-equity ratio?
What is the fair market value of a bond with the following features: (a) par value...
What is the fair market value of a bond with the following features: (a) par value of $1000, (b) coupon payment of $60, and (c) 10-year maturity? Assume that current interest rates are 5%. a. $930.00. b. $1077.21. c. $1110.00. d. $1000.00.
Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price =...
Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price = $1,100 Coupon dates (Annual) Time to call (years) 3 Price if Called $1,030.00 What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date? A. 0.62% B. 0.63% C. 2.75% D. -0.31% E. 2.73%
You own a bond with the following features: 5 years to maturity, face value of $1000,...
You own a bond with the following features: 5 years to maturity, face value of $1000, coupon rate of 2% (annual coupons) and yield to maturity of 6.3%. If you expect the yield to maturity to remain at 6.3%, what do you expect the price of the bond to be in two years? Enter the answer in dollars, rounded to the nearest cent (2 decimals).
Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 5.00% Face Value = $1,000 Annual Coupo...
Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 5.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 6.00% Immediately after you buy the bond the interest rate changes to 5.50% What is the "reinvestment" effect in year 3 ? Group of answer choices a) -$0.78 b) -$0.80 c) $0.80 d) $0.78
What is the price of a bond with the following features? 8 years to maturity, face...
What is the price of a bond with the following features? 8 years to maturity, face value of $1000, coupon rate of 3% (annual coupons) and yield to maturity (discount rate) of 9.6%.
What is the fair market value of a bond with the following features: (a) par value...
What is the fair market value of a bond with the following features: (a) par value of $1000, (b) coupon payment of $90, and (c) 10-year maturity? Assume that current interest rates are 10%. $938.55. $1000.00. $1110.00. $1090.24.
What is the fair market value of a bond with the following features: (a) par value...
What is the fair market value of a bond with the following features: (a) par value of $1000, (b) coupon payment of $85, and (c) 10-year maturity? Assume that current interest rates are 8%. O $1110.00. $987.00 O $1000.00. O $1033.55
A $100 par value bond has the following features: Term to maturity is 25 years. Annual...
A $100 par value bond has the following features: Term to maturity is 25 years. Annual coupon rate is 5%. The yield on the bond is an annual effective interest rate of 8%. Calculate the percentage of the 6th coupon payment used to pay interest.
1) The principal amount of a bond that is repaid at the end of the loan...
1) The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon B) face value. C) maturity D) yield to maturity E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1.000 in the market is called a bond A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays...
What is a bond? What is face/principal value? What is maturity value? What is stated interest rate? What the types of bonds and be able to define each one? What is a bond issued at premium, at discount or par (face) value mean? What is market interest rate? What is maturity date? Why do investors buy bonds? What is leverage? What is debt-to-equity ratio?
What is the fair market value of a bond with the following features: (a) par value of $1000, (b) coupon payment of $90, and (c) 10-year maturity? Assume that current interest rates are 10%. $938.55. $1000.00. $1110.00. $1090.24.
What is the fair market value of a bond with the following features: (a) par value of $1000, (b) coupon payment of $85, and (c) 10-year maturity? Assume that current interest rates are 8%. O $1110.00. $987.00 O $1000.00. O $1033.55
A $100 par value bond has the following features: Term to maturity is 25 years. Annual coupon rate is 5%. The yield on the bond is an annual effective interest rate of 8%. Calculate the percentage of the 6th coupon payment used to pay interest.
1) The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon B) face value. C) maturity D) yield to maturity E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1.000 in the market is called a bond A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays...
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