Which of the following constitute default on a bond? a. nonpayment of par value b. nonpayment...
Which of the following constitute default on a bond? a. nonpayment of par value b. nonpayment of coupon c. violation of the indenture d. all the above e. none of the above
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Which of the following constitute default on a bond? a.
nonpayment of par value b. nonpayment...
10) to determine the present value of a bond that pays semiannual interest, which of the following adjustments shou...
10) to determine the present value of a bond that pays semiannual interest, which of the following adjustments should not be made to compute the price of the bond? a. The annualized coupon should be split in half. b. The annual discount rate should be divided by 2. c. The number of annual periods should be doubled. d. The par value should be split in half. e. All of the above adjustments have to be made. 19) Assume a bond...
A $1,000 par bond with an 8% semi-annual coupon sells at a discount to par. What...
A $1,000 par bond with an 8% semi-annual coupon sells at a discount to par. What must be true about the bond? A. It is underpriced B. It is in default C. It has a yield to maturity greater than 8% D. None of the above
1) Bond with a $1.000 par value has an 8 percent annual coupon rate. It will...
1) Bond with a $1.000 par value has an 8 percent annual coupon rate. It will mature in 4 years, and annual coupon payments are made at the end of each year. Present annual yields on similar bonds are 6 percent. What should be the current price? - a. S1.069.31 b. S1.000.00 c. $9712 d. $927.66 e. none of the above 2) A bond with a ten percent coupon rate bond pays interest semi-annually. Par value is $1.000. The bond...
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in...
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
If a bond is selling for its face value, which of the following statements is true?...
If a bond is selling for its face value, which of the following statements is true? a. The coupon rate and the yield to maturity are the same b. The par value is less than the face value c. This is only possible if this is a zero coupon bond d. all of the statements above are true
Consider a group of coupon paying bond with zero credit-default risk. Each have a par value...
Consider a group of coupon paying bond with zero credit-default
risk. Each have a par value of $100. Each are trading at par value.
Their maturity period range from 1 year to 5 years. Determine the
spot rate for all five bonds. (Hint: This a par curve where the
coupon rate is equal to the yield to maturity.
The detail is given in the table
below:
Coupon rate Par value Bond price Years to maturity 1.0 2.0 3.0 4.0 4.00%...
A bond which is valued at par has a yeild to maturity which is ____ its...
A bond which is valued at par has a yeild to maturity which is ____ its coupon rate ? A. equal to B. greater than C less than D. none of the above
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...
The duration of a par-value bond with a coupon rate of 8.7% and a remaining time...
The duration of a par-value bond with a coupon rate of 8.7% and a remaining time to maturity of 6 years is A) 6.0 years. B) 5.1 years. C) 3.95 years. D) 4.27 years. E) None of the options are correct.
1) J&J Manufacturing issued a bond with a $1,000 par value. The bond has a coupon rate...
1) J&J Manufacturing issued a bond with a $1,000 par value. The bond has a coupon rate of 6% and makes payments semiannually. If the bond has 15 years remaining and the annual market interest rate is 7.2%, what will be bond sell for today? A. $1,435.93 B. $789.12 C. $892.07 D. $891.02 2) The value of a bond can be found by A. Calculating the present value of an annuity (interest payments) B. Calculating the present value of a lump sum (the principal) C. None of the above D. Both A and...
10) to determine the present value of a bond that pays semiannual interest, which of the following adjustments should not be made to compute the price of the bond? a. The annualized coupon should be split in half. b. The annual discount rate should be divided by 2. c. The number of annual periods should be doubled. d. The par value should be split in half. e. All of the above adjustments have to be made. 19) Assume a bond...
1) Bond with a $1.000 par value has an 8 percent annual coupon rate. It will mature in 4 years, and annual coupon payments are made at the end of each year. Present annual yields on similar bonds are 6 percent. What should be the current price? - a. S1.069.31 b. S1.000.00 c. $9712 d. $927.66 e. none of the above 2) A bond with a ten percent coupon rate bond pays interest semi-annually. Par value is $1.000. The bond...
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
Consider a group of coupon paying bond with zero credit-default
risk. Each have a par value of $100. Each are trading at par value.
Their maturity period range from 1 year to 5 years. Determine the
spot rate for all five bonds. (Hint: This a par curve where the
coupon rate is equal to the yield to maturity.
The detail is given in the table
below:
Coupon rate Par value Bond price Years to maturity 1.0 2.0 3.0 4.0 4.00%...
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...
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