Question
Please answer all question not just one question. its important to answer all please 1. A bond that sells for greater than $1000 when yields
Please answer all question not just one question. its important to answer all please 1. A bond that sells for greater than $1000 when yields are 10% must have an annual coupon that is greater than $100. (T/F) 2. A bond that sells for less than $1000 when yields are 10% must have a semi-annual coupon that is less than $50. (T/F) 3. A 10-year zero-coupon bond that currently has a yield to maturity of 1.8% . What is the value of the bond? Assume semi-annual compounding. 4. A bond that yields 5% pays a coupon of $30 semi-annually. Which of the following is most likely the price of the bond?
$990 | ||
$1000 | ||
$1050 | ||
Not enough information to determine. |
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