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False 20. Ifa bond's coupon rate is higher than the market rate of interest, then the a. At a discount b. At a premium c.
False 20. Ifa bond's coupon rate is higher than the market rate of interest, then the a. At a discount b. At a premium c. At par value 21. In calculating the current price of a bond paying semiannual coupons, one needs to: a. Use half the number of years for the number of payments made b. Use double the number of years for the number of payments made c. Use the semiannual coupon d. U se the semiannual rate as the discount rate (interest rate) e. B, C, and D Which one of the following statements about zero coupon bonds is NOT true a. Zero coupon bonds have no coupon pymts but promise a single payment at maturity b zero couon bonds mustsll for es than similar bonhtma coupgon c. Zero coupon bonds make coupon payments but no principal payment at maturity pymts. d. All of the above
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