Question
Which of the following are characteristics of bonds? Check all that apply. a. The U.S. Treasury issues federal agency bonds, federal agencies issue Treasury bonds,
Which of the following are characteristics of bonds? Check all that apply.
a. The U.S. Treasury issues federal agency bonds, federal agencies issue Treasury bonds, state and local governments issue corporate bonds, and corporations issue municipal bonds.
b. They are registered, meaning that the issuer is required to maintain records of who owns the bonds.
c. Their maturities are normally between 10 years and 30 years.
d. A bonds yield to maturity includes the transaction cost associated with issuing the bond.
Suppose Yakov pays $945, at issuance, to purchase a 30-year bond with a par value of $1,000 and a 6 percent coupon and holds the bond to maturity. What is his yield to maturity?
a. 5.84%
b. 6.16%
c. 6.42%
d.6.93%
please help..thank you in advance
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