Question
PLEASE I NEED IT ASAP 1) A bond has 12 years until maturity and a coupon rate of 8.2% payable semi-annually; and sells for $1,080.
PLEASE I NEED IT ASAP
1) A bond has 12 years until maturity and a coupon rate of 8.2% payable semi-annually; and sells for $1,080. Face value of the bond is $1,000. What is the capital gain yield if you keep the bond for one year? You can assume the market rate is not changing.
Multiple Choice
0.34%
0.23%
-0.34%
-0.15%
-0.23%
2)
Which statement is correct?
Multiple Choice
For premium bonds: Coupon rate > Current yield = YTM
For premium bonds: Coupon rate < Current yield < YTM
For par bonds: Coupon rate = Current yield > YTM
For discount bonds: YTM < Current yield > Coupon rate
For premium bonds: Coupon rate > Current yield > YTM
3)
Which of the following will have the lowest interest rate risk?
Multiple Choice
A 30-year bond with a 10 percent coupon.
It depends on current market rates.
A five-year bond with a 10 percent coupon.
A five-year, zero coupon bond.
A 30-year zero coupon bond.
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