Answer -
option B. A zero coupon bond
What do we call a bond that that offers to investors one lump sum payment at...
What is the price today (in dollars and cents) of a zero coupon bond that offers to the holder the amount of $1,000 at the end of year 20 f the required rate of return is 5.35%? A $135 35 OB. $352 62 OC. $2,835.90 OD. $949 22 O E $437.33
Question 14 (1 point) Guggenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is 7.85 percent and the maturity date is 9 years. What is the market price of a $1,000 face value bond? OA) $742.66 OB) $946.57 OC) $868.67 OD) $1,078.73 O E) $869.67
12. What is the amount of the annual coupon payment for a bond that has 6 years until maturity, sells for $1,050, and has a yield to maturity of 9.37%? OD. $105.00 OC. $100.00 OB. $93.70 OA. $87.12
12. What is the amount of the annual coupon payment for a bond that has 6 years until maturity, sells for $1,050, and has a yield to maturity of 9.37%? OD. $105.00 OC. $100.00 OB. $93.70 OA. $87.12
Wine and Roses, Inc. offers a bond with a coupon rate of 8% and a yield to maturity of 10 percent. The coupon is paid semi-annually to the investors and the bonds mature in 5 years. What is the market price of the bond? $922.78 OA. B. $769.22 OC. $807.89 D. $893.27
Put-call parity suggests that Select one: a. the sum of the prices of a stock and a call equal zero b. the sum of the prices of a put and a call equal zero c. the sum of the prices of a stock, a call, a put, and a bond equal zero d. sum of the prices of a stock and a put must equal the sum of the prices of a call and a discounted bond with the maturity...
1. Bond yields Aa Aa E Coupon payments are fixed, but the percentage return that investors receive varies based on market conditions. This percentage return is referred to as the bond's yield. Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the expected rate of return under certain assumptions. Which of the following is one of those assumptions? The bond is callable. The probability of default is...
-What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 11.98 percent per year, has a $1,000 par value, and is currently priced at $918? The bond can be called back in 7 years at a call price $1,089. Assume annual coupon payments. -Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 17 years and a yield to maturity of 10.23 percent,...
A 10 year zero coupon bond was issued to pay par value at maturity. The bond was purchased for $600, 1 years ago. What is the bond worth today? Select one: O a $600 O b. $660 oc. $720 O d. $800 e. $1,000
What is the yield to maturity of a one-year, risk-free, zero-coupon bond with a $5,000 face value and a price of $4,550 when released? O A. 0.018% OB. 9.89% O C. 9% OD. 4.945%