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An analyst finds that the semiannual interest rate that equates the present value of the bond's cash flow to its current market price is 3.85%.
An analyst finds that the semiannual interest rate that equates the present value of the bond's cash flow to its current market price is 3.85%. Consider the following possible alternatives: I. The bond servilent you on this security la 7.7%; ll. The effective annual yield on the bond is 7.85%; Ill. The bond's yield-to-maturity is 7.7%; IV. The bond's horizon return is 8.25%, Which of these alternatives are true? uit of 1 Select one: O a, I and Il only O b, Ill only c. IV only O d. I, Il, and ill only tion 5 A discount bond: ered Select one: a out of 1 a. Has a coupon rate which is greater than the yield to maturity. ation b. is the name given to a bond that has been called prior to maturity . c. Has a par value which is less than the market value. System Preferences . d. Has a coupon rate which is less than the yield to maturity, O e. Is selling for more than face value. 16,406 15 X O w MacBook Pro
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