Question
If the yield-to-maturity of a bond is above its stated coupon rate of interest, you would expect the price of the bond to be: Group
If the yield-to-maturity of a bond is above its stated coupon rate of interest, you would expect the price of the bond to be:
Group of answer choices
Above par value
Equal to par value
Below par value
An investor can expect future cash inflows from a bond to consist of the following:
Group of answer choices
Interest income
Par value
Original price paid
a and b
a and c
You own two bonds, Bond A has three years until maturity and Bond B has eight years until maturity. Which bonds price will have the largest percentage change in price when interest rates change?
Group of answer choices
Bond A
Bond B
They will both experience the same percentage change in price
A bond has a current price of $950, a stated coupon rate of 8.0%, pays interest semi-annually and matures in six years. What is its yield to maturity?
Group of answer choices
8.25%
7.70%
9.10%
9.25%
A bond has a current price of $1065, a stated coupon rate of 7.0%, pays interest semi-annually and matures in nine years. What is its yield to maturity?
Group of answer choices
6.35%
6.05%
7.15%
7.70%
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