Question
Investment A and B both pay interest of 5% per year. Investment A interest compounds quarterly, Investment B interest compounds semi-annually. You plan to invest
Investment A and B both pay interest of 5% per year. Investment A interest compounds quarterly, Investment B interest compounds semi-annually. You plan to invest for 5 years, which is the better investment?
A | ||
B | ||
A=B |
Stock A has low risk. Stock B has high risk. All else equal, which has the lower required return?
A | ||
B | ||
A=B |
Bond A is a municipal bond and Bond B is a corporate bond. Which bond should have the higher yield to maturity?
A | ||
B | ||
A=B |
Bond A makes semi-annual interest payments of $30. Bond B makes an annual payment of $60. All else equal, which one has the higher coupon rate?
A | ||
B | ||
A=B |
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