No.1 to no.4

All else constant, a coupon bond that is selling at a premium, must have. a. a coupon rate that is equal to the yield to maturity. b. a market price that is less than par value. c. semi-annual interest payments. d. a yield to maturity that is less than the coupon rate. e. a coupon rate that is less than the yield to maturity. The long-term bonds issued by state and local governments in the United States are called bonds. a. Treasury b. municipal c. floating-rate d. junk e. zero coupon Which of the following statements concerning bond features is (are) correct? I. Bondholders generally have voting power in a corporation. II. Bond interest is tax-deductible as a business expense. III. Bondholders are owners of a corporation. IV. Failure to pay either the interest payments or the bond principle as agreed can cause a firm to go into bankruptcy. a. II only b. I and II only c. Ill and IV only d. II and IV only e. II. III, and IV only Guggenheim. Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the maturity date is 9 years. What is the market price of a $1,000 face value bond? a. $742.66 b. $868.67 c. $869.67 d. $1, 078.73 e. $1, 079.59