what happens when a bond becomes due?
Finance-Everfi module: what happens when a bond becomes due?
A
You pay it back to the issuer, minus interest.
B
The issuer will pay you back, plus interest.
C
You pay it back to the issuer, plus interest.
D
The issuer will pay you back, minus interest.
Homework Answers
The answer is B: The issuer will pay you back, plus interest.
answer is: B The issuer will pay you back, plus interest. Prior to the purchase of the bond, the bond issuer will specify the interest rates of the bonds and the maturity dates of the bond.The bond itself can be sold to another persons, but the interest revenue would not be paid by the issuer before the maturity date.When you finally enter the maturity date, the issuer of the bond would pay back the amount of money on the bond plus interests to the last legal holder of the bond.
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What happens to the price of a three-year bond with an 8% coupon when interest rates...
What happens to the price of a three-year bond with an 8% coupon when interest rates change from 8% to 5%? A price increase of $71.54 A price decrease of $71.54 A price increase of $81.70 A price decrease of $81.70
The Fed sells a bond to a bank. Other things the same 10. what happens to...
The Fed sells a bond to a bank. Other things the same 10. what happens to the Fed’s holdings of securities? 11. if the bank transfers funds for its deposits at the Fed to pay the Fed for the bond, what happens to the banks reserves? 12. overall what happens to the bank’s assets? Please help me with these. Thank you! I will rate. 13. overall what happens to the Fed’s assets? 14. overall what happens to the Fed’s liabilities?...
11) When discussing bonds, convexity relates to the ________. A. shape of the bond price curve...
11) When discussing bonds, convexity relates to the ________. A. shape of the bond price curve B. shape of the yield curve C. slope of the yield curve D. shape of the bond dealer 12) A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in 16 years, it should sell for a price of __________ today. A. $458.00 B. $641.00 C. $789.00 D. $1,100.00 13) The yield-to-maturity (YTM) on...
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If the donor cell is F' and the recipient is F- what happens to the recipient...
If the donor cell is F' and the recipient is F- what happens
to the recipient after conjugation?
a. becomes HFR
b. becomes F+
c. becomes F'
d. stays F-
4. If the donor cell is F' and the recipient is F- what happens to the recipient after conjugation? a becomes HFR b. becomes F+ e. becomes F d. stays F-
H19 X fx ESEF 1 Given the following... Show in excel what happens when the bond is sold at par value. 2 Face Value $2,000 3 Yearly Interest Rate 10% 4 Coupon Rate 5% 5 Frequency of Payments Semi-Annual 6 Payments/year 7 Number of Payments 8 Maturity Date 1-Jul-50 9 a. Show how the order of YTM, Coupon rate and Current Yield changes when the bond is sold at a discount. 10 b. Show how the order of YTM, Coupon...
10. A callable corporate bond can be purchased by the bond issuer before maturity for a price specified at the time the bond is issued. Corporation X issues two bonds (bond A and bond B) at the same time with the same maturity, par value, and coupons. However, bond A is callable and bond B is not. Which bond will sell for a higher price and why? (a) Bond B; bond A should have the value of bond B minus...
1. What happens at the level of molecules, when a solid becomes a liquid? 2. Why do some parts of the crystals melt before the whole crystal or some other crystals? 3. Look up the melting points (in C) of the following species and include the reference. Benzoic acid Reference Fructose Reference Ascorbic acid Reference 4. Stable solids have strong bonds between molecules. Of the three compounds melted benzoic acid, fructose, and ascorbic acid-rank them from weakest bonds to strongest...
If the donor cell is F' and the recipient is F- what happens
to the recipient after conjugation?
a. becomes HFR
b. becomes F+
c. becomes F'
d. stays F-
4. If the donor cell is F' and the recipient is F- what happens to the recipient after conjugation? a becomes HFR b. becomes F+ e. becomes F d. stays F-
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