Question
Please solve the following, Will upvote! Thank you in advance! 1 Two years ago you purchased a $1,000 par bond that has a 7% coupon
Please solve the following, Will upvote! Thank you in advance!
1
Two years ago you purchased a $1,000 par bond that has a 7% coupon and 12 years to maturity. You purchased this bond at par value when it was originally issued. If the current market rate for this type and quality of bond is 7.5%, then you would expect: |
the market price of the bond can be less than, equal to, or more than $1,000. | ||
the market price of the bond to be greater than $1,000. | ||
the market price of the bond to be less than $1,000. | ||
the market price of the bond to be $1,000. |
2-
All else constant, a bond will sell at _____ when the yield to maturity is _____ the coupon rate. |
at par; less than | ||
a premium; higher than | ||
a discount; higher than | ||
a premium, equal to | ||
at par; higher than |
3-
Which one of the following will increase net working capital of a firm?
A decrease in accounts receivable. | |||||
An decrease in inventory. | |||||
A decrease in accounts payable | |||||
|
4-
-
The correlation between an asset and itself is:
equals to -1
equals to its standard deviation
equals to its variance
equals to +1
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