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QUESTION 26 Use the following information to answer the next 5 questions: You want to buy a Cleveland Indians 5%, $100,000 bond. The bond pays
QUESTION 26 Use the following information to answer the next 5 questions: You want to buy a Cleveland Indians 5%, $100,000 bond. The bond pays interest annually. The bond currently has exactly seven years to maturity. Figure out the value of the band under each of the following scenarios: If the bonds are sold with a Current interest rate of 39, they will be said to be sold at O a discount O a premium. O al par. O the coupon rate, O none of these. QUESTION 27 Current interest rates are 6% O $112,460.56 O $ 100,000.00 O $ 119,415.97 O $ 84,380.89 O $ 94,417.62 QUESTION 28 Current Interest rates are 546 O $112,460.56 O $ 100,000.00 O $ 119,415.97 O S 84,380.89 O $ 94,417.62 QUESTION 2 If the bonds are issued to yield B%, the face interest rate of 5% is also known as The effective rate The coupon rate The premium rate The discount rate None of these QUESTION 30 Current interest rates are 2% O $112,460.56 O $ 100,000.00 O $ 119,415.97 OS B4,380.89 O $ 94,417.62
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