Which of the following will increase if the coupon rate for a bond increases? I. face value II. market value III. yield-...
Which of the following will increase if the coupon rate for a bond increases?
I. face value
II. market value
III. yield-to-maturity
IV. current yield
Is it A. I and IV only, B. II, III, and IV only, C.II only, D. II
and IV only?
Homework Answers
Ans B. II, III, and IV only
Market value, yield-to-maturity, current yield will increase if the coupon rate for a bond increases.
Add Answer to:
Which of the following will increase if the coupon rate for a bond increases? I. face value II. market value III. yield-...
Which of the following are characteristics of a premium bond? I. coupon rate < yield-to-maturity II....
Which of the following are characteristics of a premium bond? I. coupon rate < yield-to-maturity II. coupon rate > yield-to-maturity III. market price > face value IV. market price < face value A. II and IV only B. I only C. I and III only D. II and III only
Which of the following will decrease if the coupon rate decreases? I. Market Value II. Face...
Which of the following will decrease if the coupon rate decreases? I. Market Value II. Face Value III. Current Yield IV. Yield-to-Maturity A) I, II and III only B) I, III and IV only C) I and II only D) I and IV only
Which are true for after-tax cost of debt: 1. Increases as firm's bond increases II. Increases...
Which are true for after-tax cost of debt: 1. Increases as firm's bond increases II. Increases when market interest rate increases III. Increases as tax-rates decrease IV. Increases as bond prices increase Select one a. ll and Ill only b. I and Ill only C. II, III, and IV only d. 1, II, III, and IV O
Consider the following bond: Face value = $1000; coupon rate = 8%; yield to maturity =...
Consider the following bond: Face value = $1000; coupon rate = 8%; yield to maturity = 5%; maturity = 5 years. a. If interest payments are made annually, what is the value of this bond? What are this year's current yield to capital gains yield? b. What is the value of the bond 3 years from now? What are the current yield to capital gains yield to be 3 years from now? c. thank you.
What happens to the market value, yield to maturity, and current yield of a bond if...
What happens to the market value, yield to maturity, and current yield of a bond if the coupon rate increases? What would happen to the face value?
Which of the following $5,000 face-value securities has the highest yield to maturity? Explain your answer....
Which of the following $5,000 face-value securities has the highest yield to maturity? Explain your answer. i) A 6 percent coupon bond selling for $5,000 ii) A 6 percent coupon bond selling for $5,500 iii) A 10 percent coupon bond selling for $5,000 iv) A 12 percent coupon bond selling for $4,500
The yield to maturity on a bond is: Select one: a. Coupon rate divided by the...
The yield to maturity on a bond is: Select one: a. Coupon rate divided by the Market price b. Annual interest divided by Face value C. Same as current yield d. Same as market rate
Consider a bond with a 6% annual coupon and a face value of $900 Complete the...
Consider a bond with a 6% annual coupon and a face value of $900 Complete the following table. (Enter your responses rounded to two decimal places) Years toYield to Current Maturity Maturity Price 4% 6% 6% 4% 8% 6 the coupon rate, the bond's current price is below its face value. For a given maturity, the When the yield to maturity is bond's current price maturity increases. When the yield to maturity is the number of years to maturity as...
You are considering a bond with a face value of $1 000 and a coupon rate...
You are considering a bond with a face value of $1 000 and a coupon rate of 2.0%. The bond has 16 year until maturity and coupon payments are paid semiannually. The yield to maturity on similar securities in the market is 8.3% What is the current price of this bond?
1. What is the present value of the following at the market interest rate of 10%?...
1. What is the present value of the following at the market interest rate of 10%? a. $500 to be received after 2 years. b. Income stream of $100 to be received annually during the next three years. 2. What is the difference between a discount bond and a perpetuity? a. Arrange the following in ascending order based on the yields to maturity for interest rate) Simple loan of $100 to be repaid in full after one year by paying...
Which are true for after-tax cost of debt: 1. Increases as firm's bond increases II. Increases when market interest rate increases III. Increases as tax-rates decrease IV. Increases as bond prices increase Select one a. ll and Ill only b. I and Ill only C. II, III, and IV only d. 1, II, III, and IV O
The yield to maturity on a bond is: Select one: a. Coupon rate divided by the Market price b. Annual interest divided by Face value C. Same as current yield d. Same as market rate
Consider a bond with a 6% annual coupon and a face value of $900 Complete the following table. (Enter your responses rounded to two decimal places) Years toYield to Current Maturity Maturity Price 4% 6% 6% 4% 8% 6 the coupon rate, the bond's current price is below its face value. For a given maturity, the When the yield to maturity is bond's current price maturity increases. When the yield to maturity is the number of years to maturity as...
1. What is the present value of the following at the market interest rate of 10%? a. $500 to be received after 2 years. b. Income stream of $100 to be received annually during the next three years. 2. What is the difference between a discount bond and a perpetuity? a. Arrange the following in ascending order based on the yields to maturity for interest rate) Simple loan of $100 to be repaid in full after one year by paying...
Most questions answered within 3 hours.
-
An MNE is this kind of industry when competition in one country
is essentially independent of...
asked 49 minutes ago -
. For this set of questions, determine what
proportion of a normal distribution is located betweeneach...
asked 1 hour ago -
A college student is employed as a door-to-door newspaper
salesman. Historical data suggests that the student...
asked 2 hours ago -
MATLAB HW 11 problem using Switch Case and Input commands
Write a script file that calculates...
asked 2 hours ago -
Considering gravitational time dilation, calculate the time that
passes in Earth’s surface while 1 hour passes...
asked 2 hours ago -
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 3 hours ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 3 hours ago -
IN PYTHON ONLY !! Program 2: Re-work
program #5 (WeeklyHours) from the previous assignment such that...
asked 4 hours ago -
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 5 hours ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 7 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 7 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 7 hours ago