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Will rate all answers, thanks! 13. If this bond feature is present, the issuer can offer a lower yield to maturity than would otherwise be
Will rate all answers, thanks!
13. If this bond feature is present, the issuer can offer a lower yield to maturity than would otherwise be necessary. A. B. C. D. E. Stock purchase warrant Conversion feature Call feature Both "A" and "B" above Both "B" and "C" above 14. Two bonds each have a par value of $1,000 and a coupon rate of 10%. Investors require a return of 10% on both bonds. Bond A has 12 years remaining to maturity; Bond B has 5 years remaining to maturity. Suppose that for each of these two bonds, the rate of return that investors require falls from 10% to 8%. Which statement below is most accurate? A. The prices of both bonds rise, but the price of Bond A rises by more than does the price of Bond B. B. The prices of both bonds rise, but the price of Bond B rises by more than does the price of Bond A. C. The prices of both bonds fall, but the price of Bond A falls by more than does the price of Bond B. D. The prices of both bonds fall, but the price of Bond B falls by more than does the price of Bond A. E. The prices of both bonds fall by the same amount. 15. You are interested in buying a bond having a face value of $1,000, a time to maturity of 10 years, and a coupon rate of 12%. The bond makes one coupon payment per year, and its current price is $1,100. What is the yield to maturity on this bond? A. B. C. D. E. 8.63% 10.35% 10.46% 12.00% 12.55%Step by Step Solution
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