Question
HELP ASAP 1. Compare the coupon rates on the following pairs of bonds assuming all else equal. A senior bond ______ a junior bond; a
HELP ASAP
1.
Compare the coupon rates on the following pairs of bonds assuming all else equal. A senior bond ______ a junior bond; a bond without a sinking fund ________ one with a sinking fund.
Group of answer choices
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2.
Which of the following bond has the highest interest rate risk?
15-y & 4% coupon
10-y & 6% coupon
10-y & 4% coupon
15-y & 1% coupon
3.
Bellingham Corp. issued 15-year bonds 2 years ago at a coupon rate of 4.5 percent. The bonds make semiannual payments and carry a face value of $1,000. If these bonds currently sell for $950, what is the YTM on the bond?
Group of answer choices
3.51%
4.98%
8.73%
2.49%
5.03%
4.
Bellred Corp. just issued 30-year bonds at a coupon rate of 7.5 percent. The bonds make quarterly payments. If these bonds currently sell for 95 percent of par value (assuming a par value of $1,000), what is the YTM on the bond?
Group of answer choices
1.98%
1.63%
4.04%
8.08%
7.94%
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