Can you please answer question #27?
Stephenson co. 's 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? The bond's coupon rate exceeds its current yield. The bond's yield to maturity is greater than its coupon rate. If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850. The bonds current yield exceeds its yield to maturity. Which of the following statements is CORRECT? The total yield on a bond is derived from dividends plus changes in the price of the bond. The market value of a boons will always approach its per value as its maturity sate approaches, provided the bond's required return remarks constant. Bonds issued by larger companies always have lower yields to maturity (less risk) than bonds issued by smaller companies. If the Federal Reserve unexpectedly announces that it expects inflation to increase, than we would probably observe an immediate increase in bond prices. Reinegar Corporation is planning two new issues of 25-year bonds. Bond par will be sold at its $1,000 par value, and it will have a 10% semiannual coupon. Bond OID will be an Original Issue Discount bond, and it will also have a 25-year maturity and a $1,000 par value, but its semiannual coupon will be only 6.25%. If both bonds are to provide investors with the same effective yield, how many of the OID bonds must Raingear issue to raise $3,000,000? Disregard flotation cost, and round your final answer up to a whole number of bonds. A company issues a callable (at par) ten-year, 6% coupon payments. The bond can be called at par in one year after release or any time after that one a coupon payments date. On release, it has a price of $104 per $100 of face value. What is the yield to call of this bond when it is released? 0.60% 1.50% 1.92% 5.47%