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For a fixed coupon bond, the yield to maturity will be lower than the coupon rate if it is a discount bond
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For a fixed-coupon bond, the yield-to-maturity will normally be: Lower than the effective rate Lower than...
In order to have a yield to maturity greater than the coupon rate, the bond must be:
In order to have a yield to maturity greater than the coupon rate, the bond must be:Group of answer choicesselling at a discount.selling at par.selling at a premium.a zero coupon bond.
For a discount bond, its coupon rate is_ than its yield to maturity and its price...
For a discount bond, its coupon rate is_ than its yield to maturity and its price is expected to __over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A corporate bond has a 30-year maturity and pays interest annually. The quoted coupon rate is 10% and the bond is priced at par. The boond is callable in 5 years at 120% of par. What is the bonds yield to call? (Choose the closest one)...
If its yield to maturity is less than its coupon rate, a bond will sell at...
If its yield to maturity is less than its coupon rate, a bond will sell at a _____, and increases in market interest rates will _____ . discount; decrease this discount discount; increase this discount premium; decrease this premium premium; increase this premium
A bond has a current yield of 9% and yield to maturity of 10%. Is the coupon rate of the bond more or less than 9%?
A bond has a current yield of 9% and yield to maturity of 10%. Is the coupon rate of the bond more or less than 9%?
The return to bondholders is guaranteed to equal the yield to maturity only if the bond...
The return to bondholders is guaranteed to equal the yield to maturity only if the bond is held until maturity. True False The discount rate that makes the present value of a bond's payments equal to its price is termed the: A. dividend yield B. yield to maturity C. current yield D. coupon rate Assume a bond is currently selling at par value. What will happen in the future if the yield on the bond is lower than the coupon...
What is the discount yield, bond equivalent yield, and effective annual return on a $6 million...
What is the discount yield, bond equivalent yield, and effective annual return on a $6 million commercial paper issue that currently sells at 98.25 percent of its face value and is 145 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Discount yield Bond equivalent yield Effective annual return
If a coupon bond has two years to maturity, a coupon rate of 8%, a par...
If a coupon bond has two years to maturity, a coupon rate of 8%, a par value of $800, and a yield to maturity of 12%, then the coupon bond will sell for $ (Round your response to the nearest two decimal place) The price of a bond and its yield to maturity are Positively related, negitively related, or unrelated. which of the following statements is not true? A. The longer to maturity, the greater is the change in the...
If a coupon bond has two years to maturity, a coupon rate of 10%, a par...
If a coupon bond has two years to maturity, a coupon rate of 10%, a par value of S900, and a yield to maturity of 14%, then the coupon bond will sell for $(Round your response to the nearest two decimal place The price of a bond and its yield to maturity are Which of the following statements is not true? O A. Current yield is a worse approximation of yield to maturity for long-term bonds when compared to short-term...
If the coupon rate is greater than the yield-to-maturity, then the bond will be selling at...
If the coupon rate is greater than the yield-to-maturity, then the bond will be selling at a discount. a) TRUE Ob) FALSE Question 10 (2 points) ✓ Saved In a typical fixed payment, fully amortizing loan (like a mortgage or auto loan), the amount of interest applied to each successive payment and the amount of principal applied to each successive payment throughout the life of the loan. a) increases; increases b) decreases: increases c) increases; decreases d) decreases; decreases 96...
A fixed coupon bond has a coupon rate of 4% paid semi-annually with a maturity date...
A fixed coupon bond has a coupon rate of 4% paid semi-annually with a maturity date of 8/15/20. The bond uses a 30/360 day counting convention and is trading at a yield today (12/10/19) of 3%. Calculate the following for today: The Dirty Price of the Bond
For a discount bond, its coupon rate is_ than its yield to maturity and its price is expected to __over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A corporate bond has a 30-year maturity and pays interest annually. The quoted coupon rate is 10% and the bond is priced at par. The boond is callable in 5 years at 120% of par. What is the bonds yield to call? (Choose the closest one)...
What is the discount yield, bond equivalent yield, and effective annual return on a $6 million commercial paper issue that currently sells at 98.25 percent of its face value and is 145 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Discount yield Bond equivalent yield Effective annual return
If a coupon bond has two years to maturity, a coupon rate of 10%, a par value of S900, and a yield to maturity of 14%, then the coupon bond will sell for $(Round your response to the nearest two decimal place The price of a bond and its yield to maturity are Which of the following statements is not true? O A. Current yield is a worse approximation of yield to maturity for long-term bonds when compared to short-term...
If the coupon rate is greater than the yield-to-maturity, then the bond will be selling at a discount. a) TRUE Ob) FALSE Question 10 (2 points) ✓ Saved In a typical fixed payment, fully amortizing loan (like a mortgage or auto loan), the amount of interest applied to each successive payment and the amount of principal applied to each successive payment throughout the life of the loan. a) increases; increases b) decreases: increases c) increases; decreases d) decreases; decreases 96...
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