Question
Suppose a 3-year, 4% coupon bond (assume annual coupon payments) is selling for $920. As always, assume a face value of $1,000. The T-Bill rate
Suppose a 3-year, 4% coupon bond (assume annual coupon payments) is selling for $920. As always, assume a face value of $1,000. The T-Bill rate is .2% and the Beta of the common stock of the bonds issuer is 1.25. What is the bonds Current Yield?
Select one:
a. 4.35%
b. 4.00%
c. 7.05%
d. Cannot be determined from the information given
Suppose a 3-year, 4% coupon bond (assume annual coupon payments) is selling for $920. As always, assume a face value of $1,000. The T-Bill rate is .2% and the Beta of the common stock of the bonds issuer is 1.25. This bond must have been issued by:
Select one:
a. A City
b. The Federal Government
c. Cannot be determined from information given
d. A Corporation
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