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) the coupon rate is 5%
d) the yield on the bond is 5%
Q1:
option A: (-50, 2, 2, 50)
---trading at par means current price of the bond is equal to par value ( here both are 50)
Q2:
option C: The coupon rate from the equation is given at 5%
Which of the following cash flow streams represent bonds that are trading at par? (select all...
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 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 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%
#1. Part a. Which of the following bonds is different than the other? (choose one) (-45, 7.5, 7.5, 7.5, 50) (-18, 3, 3, 3, 21) (-6, 1, 1, 1, 7) (-90, 15, 15, 15, 105) Part b. Which of the folliwng cash flow streams represent bonds that are trading at par? (check all that apply) (-100, 5, 5, 105) (-10, 1, 1, 12) (-20, 1, 1, 21) (-50, 2, 2, 50) Part c. Which of the following must be true...
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)...
4. Mr. Peanutbutter and Princess Buttercup are both evaluating the same cash flow stream. Princess Buttercup, however, has better outside investment opportunities than Mr. Peanutbutter does and she faces a higher opportunity cost of time as a result. Which of the following will be true? a) Buttercup and Peanutbutter will have identical willingness to pay for the same cash flow stream b) Buttercup will be willing to pay more than Peanutbutter for the same cash flow stream c) Not enough...
1. If your effective annual discount rate is 7%, what is your effective quarterly interest rate? (express as a decimal to 3 digits, e.g. 7% should be written as 0.070) 2. If you had to amortize a $120,000 loan over a 10-year period into a payment stream that looks like a uniform annuity flow taking the time value of money into an account, then the value of the monthly payments at an APR of 9% on the loan must be...
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)...
4.) Which of the following bonds is trading at par? A. a bond with a $2,000 face value trading at $1,987 B. a bond with a $2,000 face value trading at $2,012 C. a bond with a $1,000 face value trading at $1,000 D.a bond with a $1,000 face value trading at $999 6.) How much will the coupon payments be of a 20-year $ 10,000 bond with a 8% coupon rate and semiannual payments?
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay...