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Indicate which 9 of the following 18 statements are true. Assume face values, coupon rates, and YTMs of bonds are positive, and that time-to-maturity is

Indicate which 9 of the following 18 statements are true. Assume face values, coupon rates, and YTMs of bonds are positive, and that time-to-maturity is greater than 1 year.

If the price of bond A increased immediately after a change in YTM, then the change in YTM involved an increase in YTM.

If the yield to maturity of bond A declined by 1 percentage point today, then the price of bond A increased immediately after the YTM declined.

If the price of bond A declined immediately after a change in YTM, then the change in YTM involved an increase in YTM.

Bonds issued by Griffs Grills have a face value of $1,000 and pay annual coupons with the next coupon due in 1 year. If the price of the bond is less than $1,000, then the bonds coupon rate is less than its yield-to-maturity.

The value of bond A is greater than the value of bond B if 1) the information in the table provides information on each bond; 2) both TA and TB are greater than 0, but we do not know if TA is greater than, equal to, or less than TB; and 3) YB > CB > CA > YA > 0.

Bond

Coupon rate

Yield-to-maturity

Time-to-maturity

Face value

Next annual coupon

A

CA

YA

TA

$1,000

In 1 year

B

CB

YB

TB

$1,000

In 1 year

If the yield to maturity of bond A increased by 1 percentage point today, then the price of bond A increased immediately after the YTM increased.

Bonds issued by Griffs Grills have a face value of $1,000 and pay annual coupons with the next coupon due in 1 year. If the price of the bond is greater than $1,000, then the bonds coupon rate is greater than its yield-to-maturity.

The value of bond Z is greater than the value of bond Q if 1) the information in the table provides information on each bond; 2) both TQ and TZ are greater than 0, but we do not know if TQ is greater than, equal to, or less than TZ; and 3) YQ > CQ > CZ > YZ > 0.

Bond

Coupon rate

Yield-to-maturity

Time-to-maturity

Face value

Next annual coupon

Q

CQ

YQ

TQ

$1,000

In 1 year

Z

CZ

YZ

TZ

$1,000

In 1 year

If the price of bond A declined immediately after a change in YTM, then the change in YTM involved a decline in YTM.

Bonds issued by Griffs Grills have a face value of $1,000 and pay annual coupons with the next coupon due in 1 year. If the price of the bond is greater than $1,000, then the bonds coupon rate is less than its yield-to-maturity.

All of the following are parts of the bond contract: the coupon rate, face value, frequency of coupon payments, maturity date, and yield-to-maturity.

If the yield to maturity of bond A increased by 1 percentage point today, then the price of bond A declined immediately after the YTM increased.

All of the following are parts of the bond contract: the coupon rate, face value, frequency of coupon payments, and maturity date.

Bonds issued by Griffs Grills have a face value of $1,000 and pay annual coupons with the next coupon due in 1 year. If the price of the bond is less than $1,000, then the bonds coupon rate is greater than its yield-to-maturity.

If the yield to maturity of bond A declined by 1 percentage point today, then the price of bond A declined immediately after the YTM declined.

If the price of bond A increased immediately after a change in YTM, then the change in YTM involved a decline in YTM.

The value of bond Z is greater than the value of bond Q if 1) the information in the table provides information on each bond; 2) both TQ and TZ are greater than 0, but we do not know if TQ is greater than, equal to, or less than TZ; and 3) YZ > CZ > CQ > YQ > 0.

Bond

Coupon rate

Yield-to-maturity

Time-to-maturity

Face value

Next annual coupon

Q

CQ

YQ

TQ

$1,000

In 1 year

Z

CZ

YZ

TZ

$1,000

In 1 year

The value of bond A is greater than the value of bond B if 1) the information in the table provides information on each bond; 2) both TA and TB are greater than 0, but we do not know if TA is greater than, equal to, or less than TB; and 3) YA > CA > CB > YB > 0.

Bond

Coupon rate

Yield-to-maturity

Time-to-maturity

Face value

Next annual coupon

A

CA

YA

TA

$1,000

In 1 year

B

CB

YB

TB

$1,000

In 1 year

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