#1.
Part a. Which of the following bonds is different than the other? (choose one)
Part b. Which of the folliwng cash flow streams represent bonds that are trading at par? (check all that apply)
Part c. Which of the following must be true regarding the bond described by the cash flow stream (-100, 5, 105)? (Check all that apply)
Answer # 1)
a)
The correct option is first ( - 45, 7.5,7.7,7.5, 50) . This is different from the remaining three as the middle three values are 7.5 which is not equal to 50 - 45 = 5
In other cases
Option 2) 21 - 18 = 3
Option 3 ) 7 -6 = 1
Option 4) 105 - 95 = 15.
b)
The correct option is first option
We can see that the value 105 - 100 = 5
The par values are usuually $ 100 or $ 1000 . som municipal bonds trade at $ 5000.
The other options do not have these values.
c)
The correct options are second and third options.
The bond is trading at Par and the coupon rate is 5 %
#1. Part a. Which of the following bonds is different than the other? (choose one) (-45,...
Which of the following bonds is different than the others? a) (-90, 15, 15, 15, 105) b) (-18, 3, 3, 3, 21) c) (-45, 7.5, 7.5, 7.5, 50) d) (-6, 1, 1, 1, 7) Which of the following cash flow streams represent bonds that are trading at par? (select all that apply) a) (-50, 2, 2, 50) b) (-100, 5, 5, 105) c) (-10, 1, 1, 12) d) (-20, 1, 1, 21) Which of the following must be true regarding...
Which of the following cash flow streams represent bonds that are trading at par? (select all that apply) a) (-50, 2, 2, 50) b) (-100, 5, 5, 105) c) (-10, 1, 1, 12) d) (-20, 1, 1, 21) 9. Which of the following must be true regarding the bond described by the cash flow stream (-100, 5, 105)? (select all that apply) a) the bond is trading at par b) it is equivalent to the bond (-50, 3, 53) c)...
If a bond's coupon rate is smaller than the yield to maturity, then a) Not enough information b) The face value payment must equal the initial purchase cost c) The face value payment must exceed the initial purchase cost d) The face value payment must fall short of the initial purchase cost Which of the following bonds is different than the others? a) (-90, 15, 15, 15, 105) b) (-18, 3, 3, 3, 21) c) (-45, 7.5, 7.5, 7.5, 50)...
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Which of the following must be true regarding the bond described by the cash flow stream (-100, 5, 105)? (select all that apply) a) the bond is trading at par b) it is equivalent to the bond (-50, 3, 53) c) the coupon rate is 5% d) the yield on the bond is 5%
Which of the following cash flow streams represent bonds that are trading at par? (select all that apply) a) (-50, 2, 2, 50) b) (-100, 5, 5, 105) c) (-10, 1, 1, 12) d) (-20, 1, 1, 21)
Question 1 1). When the central bank raises the interest rates, then generally a. bond prices increase and stock prices decrease b. bond prices decrease and stock prices increase c. bond prices and stock prices tend to decrease d. bond prices and stock prices tend to increase P.S. is the correct answer "c" option? pls explain. 2). Which of the following must be true regarding the bond described by the cash flow stream (-100, 5, 105)? (select all that apply)...
Which of the following bonds is different than the others? a) (-90, 15, 15, 15, 105) b) (-18, 3, 3, 3, 21) c) (-45, 7.5, 7.5, 7.5, 50) d) (-6, 1, 1, 1, 7)
please explain your answer Which of the following bonds is different than the others? O (-18,3,3,3, 21) (-45, 7.5, 7.5, 7.5, 50) O (-90, 15, 15, 15, 105) O (-6, 1, 1, 1,7)