Question
1. The face value of the bond is paid at the maturity of the bond. True or false? 2. Which of the following is used
1. The face value of the bond is paid at the maturity of the bond. True or false?
2. Which of the following is used as a discount rate while calculating the bond price?
Yield to Maturity (YTM) | ||
Coupon Rate | ||
Face Value | ||
None |
3. Coupon payments are determined by multiplying face value of the bond with the coupon rate. True or false?
4. Which of the following explains the differences in interest rates?
The length of the investment (maturity premium). | ||
The level of risk of the investment (default premium). | ||
Both the level of risk of the investment (default premium) and the length of the investment (maturity premium). | ||
None |
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