Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please someone help thank you 23) Deternine the interest payment for the following three bonds 2.5 percent coupon corporate bond (paid semiannually), 3.15 percent coupon

please someone help thank you image text in transcribed
23) Deternine the interest payment for the following three bonds 2.5 percent coupon corporate bond (paid semiannually), 3.15 percent coupon Treasury note, and a corporate zero-coupon bond maturing in 10 years. (Assume a $1,000 par value.) A) $12.50, S15.75, S0, respectively 23) B) S2.50, s3.15, S0, respectively C) S12.50, $15.75, S100, D) S25.00, $31.50, S0, respectively 24) Consider the following three bond quotes; a Treasury note quoted at 87.25, and a corporate bond quoted at 102.42, and a municipal bond quoted at 101.45. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars? A) S1,000, $1,024.20, $1,001.45, respectively B) $872.50, S$1,000, S1,000, respectively C) $1,000, S1,000, $1,000, respectively D) $872.50, $1,024.20, 55,072.50, respectively 25) If on November 26, 2017, The Dow Jones Industrial Average closed at 12,743.40, 25) which was down 237.44 that day. What was the return (in percent) of the stock market that day? A) +0.02 percent C) -1.83 percent B) -0.02 percent D) +1.83 percent 26) 26) Why is the ask price higher than the bid price? A) It represents the gain the stock seller achieves. B) It represents the gain all participants will achieve. C) lt represents the gain the stock buy achieves. D) It represents the gain a market maker achieves

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance Theory And Practice

Authors: Eddie McLaney

7th Edition

0273702629, 978-0273702627

More Books

Students also viewed these Finance questions