coupon bond that has a culle coupon bond that he Which of the following statement is correct for a 10 yield of 76? A) The bond's internal rate of return is 79 B) The bond's market value is higher than its face value C) The face value of the bond has decreased D) The bond's maturity value exceeds the bond's price. - interest will be earned in an account into which S1.000 is deposited for one year with continuous compounding at a 13% rate? A) $169.00 B) S130.00 C) S353.34 D) $138.83 10) 10) An interest rate that has been annualized using compound interest is termed the A) discounted interest rate. B) annual percentage rate. C) effective annual interest rate. D) discount factor. 11) 11) What causes bonds to sell for a premium? A) Speculative-grade ratings B) Investment-quality ratings C) Long periods until maturity D) Coupon rates that exceed market rates 12 12) What nominal return would an investor need to receive if he desires a real return of 4% and the rate of inflation is 5%? A) 4.20% B) 8.64% C) 9.20% D) 9.00%