other things being equal which of the following types of bonds should have lower yield to maturity
a bond is a debenture
a bond has no collateral
all bonds should have the same yiled to maturity
a bond is secured by land
Ans- a bond is secured by land
As Bonds secured by land offers lower Yield to maturity because as it secured by land it is less risky and Bondholder can always claim Land securiy in case Issuer is not able to redeem bond at Maturity
other things being equal which of the following types of bonds should have lower yield to...
Determine the current price (P0) of a constant growth stock that has a D1 of $2.15, a constant growth rate (g) of 5%, and a rate of return (rS) of 12%. $40 $50 $30 $20 A company has an annual coupon bond issue that has a coupon rate of 3%, a current price of $918.89, and 10 years of maturity. Determine the bond’s YTM. Cannot be determined without knowing its YTC. 4% 5% 3% Other things being equal, which of...
1. The major benefit of a bond’s call provision is to __________. let the bondholders to vote allow the company to delay coupon payments let bondholders sell the bond at the call price let the company refinance at a lower coupon rate 2. Other things being equal, how would the price of a discount bond change one year from now if there is no change in the market interest rates? Decline. Increase. No change. Not enough information to determine. 3....
All other things being equal, the price and yield on a bond are a. positively related b. negatively related c. sometimes positively and sometimes negatively related d. not related e. indefinitely related
Which of the following statements is CORRECT? A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate. If a bond sells at par, then its current yield will be less than its yield to maturity. If a bond sells for less than par, then its yield to maturity is less than its coupon rate. A discount bond's price declines each year until it matures, when its...
Which ONE of the following bonds is the SAFEST investment for a bond investor? O A debenture with a 2020 maturity date A subordinated debenture with a 2050 maturity date A subordinated debenture with a 2020 maturity date A secured bond with a 2020 maturity date
Question 3 (1 point) Which of the following statements is correct? Subordinated debt has less default risk than senior debt. Junk bonds typically have a higher yield to maturity relative to investment grade bonds. A debenture is a secured bond that is backed by some or all of the firm's fixed assets. None of the other statements is correct. Previous Page Next Page Page 3 of 26
10. More on types of bonds Aa Aa E A legal document that details the rights of bondholders and the issuer is called If the legal document just described includes a sinking fund provision, is the bond considered to have more or less default risk, all else being equal? More default risk Less default risk You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based...
Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the ________.
Given that two bonds have the same maturity, yield to maturity and different coupon rate, which of the following is true? Is it A.The high coupon bond will be sold for premium. B. The lower coupon bond will be sold for premium. C.The high coupon bond will have higher interest rate risk., D.The low coupon rate bond will have higher interest rate risk.?
3. (Dividends and share repurchases: Basics) All other things being equal, the payment of an internally financed cash dividend is most likely to result in (a) a lower current ratio (b) a higher current ratio (c) the same current ratio