Any regular coupon bond of any maturity will sell for its face value if the coupon rate is the same as yield of Maturity.
True or False
Any regular coupon bond of any maturity will sell for its face value if the coupon rate is the same as yield of Maturity...
If its yield to maturity is less than its coupon rate, a bond will sell at a _____, and increases in market interest rates will _____ . discount; decrease this discount discount; increase this discount premium; decrease this premium premium; increase this premium
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.
A bond face value is $1000, with a 6-year maturity. Its annual coupon rate is 7% and issuer makes semi-annual coupon payments. The annual yield of maturity for the bond is 6%. The bond was issued on 7/1/2017. An investor bought it on 8/1/2019. Calculate its dirty price, accrued interests, and clean price.
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years. It pays interest annually, and the yield to maturity is 12%. In WORDS (1-2 complete sentences each) answer the following questions. What does it mean that the bond above has a face value of $1,000? What does it mean that the bond has a coupon rate of 8%? What does it mean that the bond has a maturity of 10 years?...
A bond has eight years to maturity, a $2,000 face value, and a 6.3% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,639? O A. 7.71% OB. 13.5% O C. 11.57% OD. 9.64%
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
If a coupon bond has two years to maturity, a coupon rate of 8%, a par value of $800, and a yield to maturity of 12%, then the coupon bond will sell for $ (Round your response to the nearest two decimal place) The price of a bond and its yield to maturity are Positively related, negitively related, or unrelated. which of the following statements is not true? A. The longer to maturity, the greater is the change in the...
If a coupon bond has two years to maturity, a coupon rate of 10%, a par value of S900, and a yield to maturity of 14%, then the coupon bond will sell for $(Round your response to the nearest two decimal place The price of a bond and its yield to maturity are Which of the following statements is not true? O A. Current yield is a worse approximation of yield to maturity for long-term bonds when compared to short-term...
A 25-year, 8.21% coupon rate bond has a $1,000 face value and a yield to maturity of 7.28 percent. What is the price of the bond? A) $1000 B) $1105.70 C) $1106.37 D) $995.70 E) $996.37
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