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1) Allison just received the semiannual payment of 535 on a bond she owns. Which tem) refers to this paryment A) Call premium B) Face

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1) Allison just received the semiannual payment of 535 on a bond she owns. Which tem) refers to this paryment A) Call premium B) Face valuc C) Discount Dl Cospon E) Yield 2) Bert owns a bond that will pay him $45 cach year in innerest plus $1,000 as a principal 2 payment at maturity. What is the $1,000 called? A) Face value 8) Yield C) Dirty price Dl Coupon E) Discount 3) The bond market requires a retum of 9.8 percent on the S-year bonds issued by JW Indastries. The 9.8 percent is referred to as the A) face rate. B) current yield ciyield to maturity DI coupon rate E) call rate. 4) Which one of these equations applies to a bond that currently has a market price that 4) escoods par value? A) Yield to maturity Current yiekd B) Market value Face value C) Yield to maturity Coupon rate O) Market valueFace value E) Current yield> Coupoe rate 5) All else constant, a bond will sell at when the coupon rane is the S yield to maturity A) a premium; less tharn B) a discount: bigher than C) par, less than D) a premium oqual to E) a discount; less than 6) DLO Inc bonds mature in 12 years and have a coupon rate of 6 percent. If the market ) rate of interest increases, then the A) yield to maturity will be less than the coupon rate B) market price of the bond will decrease C) cougon rate will also increase. D) cougon payment will increase E) current yield will decrease Which one of the following rclationships is stated correctly? 7) A) An increase in market rates increases the market price of a bond B) The call price must equal the par valuc. C) Increasing the coupon rate decreases the current yield, all else constant D) The coupon rate excoeds the current yield when a bond sells at a discount E) Decreasing the time to maturity increases the price of a discount bond, all else 8) Round Dot lans is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds will mature in 10 years and will be sold at par. Given this, which one of the following statements is coerect? A) The bonds will pay 10 interest payments of $60 each

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