Question
In: Finance
If the yield to maturity and the coupon rate are the same, then the bond should...
If the yield to maturity and the coupon rate are the same, then the bond should sell for ______.
a. a premium b. a discount c. par value
Solutions
jeff jeffy answered 2 years agoRelated Solutions
What is the coupon rate of an annual coupon bond that has a yield to maturity...
What is the coupon rate of an annual coupon bond that has a
yield to maturity of 5.5%, a current price of $949.81, a par value
of $1,000 and matures in 15 years?
6.33%
4.70%
3.07%
5.00%
5. The yield to maturity on a bond is ________. A. below the coupon rate when...
5. The yield to maturity on a bond is ________.
A. below the coupon rate when the bond sells at a discount, and
equal to the coupon rate when the bond sells at a premium.
B. the discount rate that will set the present value of the
payments equal to the bond price.
C. based on the assumption that any payments received are
reinvested at the coupon rate.
D. none of the above.
6. Ceteris paribus, the duration of a...
If the yield of maturity of the bond is lower than the coupon rate, the price...
If the yield of maturity of the bond is lower than the coupon
rate, the price of this bond will be?
Select one:
a. Higher than the par value.
b. Lower than the par value.
c. Equal the par value.
The situation in which the current market price is greater than
intrinsic value is called:
Select one:
a. All answers are incorrect.
b. Equilibrium.
c. Stock undervalued.
d. Stock overvalued.
An investor is considering purchasing a 10-year zero-coupon bond
of...
A bond with a coupon rate of 7 percent sells at a yield to maturity of...
A bond with a coupon rate of 7 percent sells at a yield to
maturity of 8 percent. If the bond matures in 11 years, what is the
Macaulay duration of the bond? What is the modified duration?
A bond with a coupon rate of 7 percent sells at a yield to maturity of...
A bond with a coupon rate of 7 percent sells at a yield to
maturity of 9 percent. If the bond matures in 12 years, what is the
Macaulay duration of the bond? What is the modified duration? (Do
not round intermediate calculations. Round your answers to 3
decimal places.)
Duration
Macaulay
years
Modified
years
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and...
The yield to maturity of a $1,000 bond with a 7.4% coupon rate,
semiannual coupons, and two years to maturity is 8.9% APR,
compounded semiannually. What is its price?
The yield to maturity of a $1,000 bond with a 7.1% coupon rate, semiannual coupons, and...
The yield to maturity of a $1,000 bond with a 7.1% coupon rate,
semiannual coupons, and two years to maturity is 8.3% APR,
compounded semiannually. What is its price?
The yield to maturity of a $1,000 bond with a 6.7% coupon rate, semiannual coupons, and...
The yield to maturity of a
$1,000
bond with a
6.7%
coupon rate, semiannual coupons, and two years to maturity
is
8.2%
APR, compounded semiannually. What is its price?
The duration of a bond with 8% annual coupon rate when the yield to maturity is...
The duration of a bond with 8% annual coupon rate when the yield
to maturity is 10% and two years left to maturity is:
Question 10 options:
1)
1.75 years
2)
1.80 years
3)
1.92 years
4)
2.96 years
A ten year bond has a coupon rate of 7% and a yield to maturity of...
A ten year bond has a coupon rate of 7% and a yield to maturity
of 9%, will you be willing to pay $1100 for this bond. Please
explain.
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