Question
1. When you invest in a bond, the regular payment of interest that you receive is called a... maturity coupon face value (wrong) par value
1.
When you invest in a bond, the regular payment of interest that you receive is called a...
maturity
coupon
face value (wrong)
par value
price
2. If you can buy a bond in the market and the price is the same as its face value, we say that the bond is trading at...
a discount
a premium(wrong)
par
the bond price is never the same as the face value
the bond price is always the same as the face value
3.
The portion of the bond total return due to collecting coupon payments is called...
Current Yield
Capital Gains Yield
Yield To Maturity
Dividend Yield(wrong)
Yield to oncoming traffic
6.As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 6 years, the coupon rate is 8% paid annually, and the discount rate is 14%.
What should be the estimated value of this bond in one year?
Enter your answer in terms of dollars, rounded to the nearest cent.
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