Question
The present value of a discount bond with one year to maturity, face value $1,000 and yield to maturity 5% is Select one: a.$952.38. b.$1,000.00.
The present value of a discount bond with one year to maturity, face value $1,000 and yield to maturity 5% is
Select one:
a.$952.38.
b.$1,000.00.
c.$1,005.00.
d.$1,050.00.
A three-year coupon bond has a face value of $1,000, a coupon rate of 7% and a yield to maturity of 10%. The price of the bond must be _____ $1,000.
Select one:
a.greater than
b.less than
c.equal to
d.cannot be determined
Government budget deficits affect the equilibrium yield on bonds due to its impact on
Select one:
a.the demand for bonds.
b.the supply of bonds.
c.the supply and demand for bonds.
d.Inflation has no effect on bond yields.
Corporations issue more bonds if
Select one:
a.their stocks are publicly traded.
b.the government runs a deficit.
c.they perceive opportunities for profitable expansion.
d.all of the above.
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