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A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a 584.52 discount from par value. The approximate yield to maturity on this bond is A6% B. 7% C. 8% D. 9% For a discount bond, its coupon rate is_than its yield to maturity and its price is expected to ___over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A corporate bond has a 30-year maturity and pays interest annually. The quoted coupon rate is 10% and the bond is priced at bar. The boond is callable in 5 years at 120% of par. What is the bonds yield to call? (Choose the closest one) A B. C. D. 10% 12% 13% 15% Everything else equal_bonds will require a higher promised YTM than bonds. A B. C. D. Secured; unsecured Non-callable; callable Mortgage; debenture BBB rate; AAA rated bond is a bond where the issuer has an option to retire the bond before maturity at a specific price after a specific date. A B. C. D. Callable Convertible Puttable Staggered You purchased a two-year 15% annual bond at 15% YTM but your reinvestment rate is only 10%. What is your realized return? A B. C. D. 11.8% 13.8% 14.7% 12.7% Based on the following zero-coupon bonds, the expected one-year interest rate three years from now is_ Maturity Yield One-year 5% Two-year 69 Three-year 7% Four-year 8% Five-year A. B. 7.00% 8.00%
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