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 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)
If the coupon rate on a bond is greater than the yield on the bond, then which of the following must be true? (select all that apply)
a) The face value exceeds the price of the bond
b) The bond is trading above par
c) The price of the bond exceeds the face value
d) The bond is trading under par
c) the coupon rate is 5%
d) the yield on the bond is 5%
Solution :- (1)
The Correct Answer is option (c) that is (-45, 7.5, 7.5, 7.5, 50)
As this is the only bond from the above four which is not redeemed at Par as Last Cashflow is not ( 45 + 7.5 )
Solution :- (3)
The Correct Answer is (A) that is the Bond is trading at Par .
Solution :- (4)
The Correct Answer is (b and C) that is
The bond is trading above par and The price of the bond exceeds the face value
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Which of the following bonds is different than the others? a) (-90, 15, 15, 15, 105)...
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If the coupon rate on a bond is greater than the yield on the bond, then which of the following must be true? (select all that apply) a. The price of the bond exceeds the face value b. The bond is trading above par c. the bond is trading under par d. the face value exceeds the price of the bond
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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%
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