Question
2. Treasury bonds are a long-time favorite of US investors. What is the most important quality that draws domestic investors? Group of answer choices High
2.
Treasury bonds are a long-time favorite of US investors. What is the most important quality that draws domestic investors?
Group of answer choices
High coupon rates
Long maturity
Considerably high yield relative to other bonds
Low risk
Potential for enormous price gain
3.
Skagit Enterprise has bonds on the market making annual payments, with 12 years to maturity and selling for $950. At this price, the bonds yield 4 percent. What must the coupon rate be on the bonds?
Group of answer choices
3.47%
7.47%
6.94%
4.00%
4.
RC Enterprise is offering a 1.5 percent coupon bond with semiannual payments and a yield of 4 percent. The bonds mature in 15 years. What is the price of a $1,000 face value bond?
Group of answer choices
$720.04
$1,223.06
$1,022.06
$722.04
$937.53
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