Question

Lester lent money to the corner store by purchasing bonds issued by the store. which of...

Lester lent money to the corner store by purchasing bonds issued by the store. which of the following would not be included in the bond contract?

a. coupon rate

b. guaranteed bond yield

c. par value of the bond

d. maturity date

e. call provision if there is one

0 0
Add a comment Improve this question Transcribed image text
Answer #1
The bond contract includes par value of the bond, Coupon rate, maturity date,call provision if there is one
Guaranteed bond yield would not be included in the bond contract
Option B guaranteed bond yield is correct
Add a comment
Know the answer?
Add Answer to:
Lester lent money to the corner store by purchasing bonds issued by the store. which of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which is the following is not true? Zero-coupon bonds always mature earlier than coupon bonds Bonds...

    Which is the following is not true? Zero-coupon bonds always mature earlier than coupon bonds Bonds that pay no annual interest (coupons) but are sold at a discount below par, thus compensating investors in the form of capital appreciation are called zero-coupon bonds A provision in a bond contract that gives the issuer the right to redeem the bonds under specified terms prior to the normal maturity date is a call provision Original maturity refers to the number of years...

  • Masters Corp. issues two bonds with 15-year maturities. Both bonds are callable at $1,120. The first bond is issued at a deep discount with a coupon rate of 7% to yield 14.4%. The second bond is issu...

    Masters Corp. issues two bonds with 15-year maturities. Both bonds are callable at $1,120. The first bond is issued at a deep discount with a coupon rate of 7% to yield 14.4%. The second bond is issued at par value with a coupon rate of 15.60% a. What is the yield to maturity of the par bond? (Round your answer to 2 decimal places.) Yield to maturity b. If you expect rates to fall substantially in the next two years,...

  • A firm issues two bonds with 20-year maturities. Both are callable at $1,050. The first bond...

    A firm issues two bonds with 20-year maturities. Both are callable at $1,050. The first bond is issued at a deep discount to par with a coupon rate of 4% and a price of $580 to yield 8.4%. The second is issued at par with a coupon rate of 8.9%. What is the yield-to-maturity of the par bond? If you expect rates to fall substantially in the next 2 years, which bond would you prefer to hold? In what sense...

  • ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18...

    ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18 years to maturity and the current price is $885. If the call price is $1,080 and the bond can be called in 8 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box. Question 19 1 pts The coupon rate on a bond...

  • Sqeekers Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The...

    Sqeekers Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The bonds make semi-annual payments and have a standard par value of $1,000. The YTM on these bonds is 4.5 percent. What is the current price of the bond? Settlement date (MM/DD/YYYY) Maturity date (MM/DD/YYYY) Years to Maturity (# of years) Coupon rate (%) Coupons per year (# per year) Face value (% of par) Yield to maturity (%) Par value ($)

  • ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18...

    ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18 years to maturity and the current price is $885. If the call price is $1,080 and the bond can be called in 8 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box. Question 19 1 pts The coupon rate on a bond...

  • 1st blank options = par value, coupon payment, price 2nd blank options = bankruptcy, default, liquidation...

    1st blank options = par value, coupon payment, price 2nd blank options = bankruptcy, default, liquidation 3rd blank options = convertible provision, sinking fund provision, call provision 4th blank options= call provision, call premium, convertibility provision 5th blank options = floating-rate, fixed-rate 6th blank options = indenture, trustee, debenture 7th = multiple choice 1. Characteristics of bonds To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond's_ par...

  • Define the Following terms. What is Capital structure? Example of Debt/ Equity instruments What Is a...

    Define the Following terms. What is Capital structure? Example of Debt/ Equity instruments What Is a bond? Bond Terminology/Features: Indenture Principal/Par value/face value Coupon Rate Coupon/ coupon payment Maturity (maturity date) Yield to maturity Discount and Premium bonds Collateral Sinking fund Call provision Call premlum Call protection Bond rating Types of bonds Secured bonds Mortgage bonds Debentures Putable bonds

  • e effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential....

    e effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond’s   is generally $1,000 and represents the amount borrowed from the bond’s first purchaser. • A bond issuer is said to be in   if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants. • The contract that describes the...

  • Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,080. The first...

    Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,080. The first bond is issued at a deep discount with a coupon rate of 6% to yield 14.4%. The second bond is issued at par value with a coupon rate of 16.50% a. What is the yield to maturity of the par bond? (Round your answer to 2 decimal places.) Yield to maturity b. If you expect rates to fall substantially in the next two years,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT