Question
1)Which of the following statements about a bond are true? i. A bond is a fixed-income security ii. The bond's interest payments vary each year
1)Which of the following statements about a bond are true?
i. A bond is a fixed-income security
ii. The bond's interest payments vary each year with the market
iii. A bond acts like an interest-only loan
Only i i and ii i and iii ii and iii All of them None of them |
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2)What is the lowest grade of the investment grade bonds?
AAA BBB B C D None of the above 3)A $1,000 face value bond is currently sold for $930. If it has 5 years until the maturity and pays 6% coupon annually, what is the yield-to-maturity of the bond? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign) 4)If a $1,000 face value bond is sold at $956.32 and has a coupon rate of 10%, which one of the following rate is the most feasible yield to maturity of this bond?
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