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A 10-year bond pays an annual coupon, Its YTM is 9%, and it currently trades at a premium. Which of the following statements is CORRECT?

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A 10-year bond pays an annual coupon, Its YTM is 9%, and it currently trades at a premium. Which of the following statements is CORRECT? Multiple Choice Ir the yield to maturity remains at 9%, then the band's price will decline over the next year. The bond's current yield is less than 9 If the yield to maturity remains at 9%, then the bond's price will remain constant over the next year. O The bond's coupon rate is less than 9% If the yield to maturity increases, then the bond's price will increase. A 15-year bond with a face value of $1,000 currently sells for $950. Which of the following statements is CORRECT? Multiple Choice The bond's yield to maturity is greater than its coupon rate. The bond's current yield exceeds its yield to maturity If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850. The bond's coupon rate exceeds its current yield. The bond's current yield is equal to its coupon rate. Which one of these is a perpetulty? Multiple Choice Car payment of $260 a month for 60 months Rental payment of $800 a month for one year Lottery winnings of $1,000 a month for life Trust income of $1.200 a year forever Retirement pay of $2,200 a month for 20 years James Henry, bought 1000 bonds of ABC Company's 20-year, 10% coupon bonds when the bond was issued 5 years ago. The yield to maturity on the bonds when it was issued was 10%. ABC company bonds are traded on the New York Stock Exchange (NYSE). Identify the lender this transaction. Multiple Choice James Henry Choice a & care correct. ABC Company None of the above. The NYSE You are comparing three Investments, all of which pay $100 a month and have an interest rate of 8 percent. One is ordinary annuity, one is an annuity due, and the third investment is a perpetuity. Which one of the following statements is correct given these three Investment options? Multiple Choice The ordinary annuity would be more valuable than the annuity due if both had a life of 10 years. The present value of all three investments must be equal To be the perpetuity, the payments must occur on the first day of each monthly period. The present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity due. O The future value of all three investments must be equal

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