Question

If the market believes that a bond's stated interest rate is generous (high), the bond will...

If the market believes that a bond's stated interest rate is generous (high), the bond will sell at a discount.
Group of answer choicesTrue
False
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The bond will sell at premium , not at discount.

Comment below if you have any query i will solve it asap !! thanks

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If the coupon rate on a bond equals the market interest rate, then the bond's price...
If the coupon rate on a bond equals the market interest rate, then the bond's price will equal Group of answer choices The coupon rate The capital gains rate the face value
.       A bond pays a coupon of $120. If the market interest rate is 10%, then...
.       A bond pays a coupon of $120. If the market interest rate is 10%, then the bond will sell at a ___________. If the market interest rate is 15%, then the bond will sell at a __________. discount; discount premium; premium discount; premium premium; discount
If the market rate of interest is 10% and the stated rate on the bond is...
If the market rate of interest is 10% and the stated rate on the bond is 8%, the bond will sell at: a. a discount b. a premium c. below market rate d. par QUESTION 13 On January 1, 2019, HK Corp. paid $800,000 for 100,000 shares of Jackie Company's common stock, which represents 35% of Jackie′s outstanding common stock. Jackie reported net income of $17,000 and paid cash dividends of $8,000 during 2019. HK should report the investment in...
if the market rate of interest is 6%, a $10,000, 10 year bond with a stated...
if the market rate of interest is 6%, a $10,000, 10 year bond with a stated annual interest rate of 8% would be issued at an amount of
When a bond's yield to maturity is higher than the bond's coupon rate, the bond: A....
When a bond's yield to maturity is higher than the bond's coupon rate, the bond: A. has a high risk of default B. has reached its maturity date C. is selling at a discount D. is priced at par E. is selling at a premium
For a zero-coupon bond: A. The coupon rate is lower than the market rate B. The...
For a zero-coupon bond: A. The coupon rate is lower than the market rate B. The cash received from investors is less than the bond's face value C. Amortization of bond discount equals to the interest expense D. The bond's net book value rises over time E. All of the above
There is a corporate bond in the market that is selling for $1,136.96 each, stated rate...
There is a corporate bond in the market that is selling for $1,136.96 each, stated rate of interest of 8.23% with a maturity of 3 years. What is the yield-to-maturity (YTM) of this bond? How can i find the PMT that goes into the financial calculator?
1.If a bond sells at a premium, (A)interest expense can not be calculated. (B)cash interest will...
1.If a bond sells at a premium, (A)interest expense can not be calculated. (B)cash interest will equal interest expense each period. (C)interest expense exceeds cash interest each period. (D)cash interest exceeds interest expense each period. 2. A bond will sell at a discount when (A)the stated rate is less than the market rate (B)the stated rate is more than the market rate (C)interest rates fall (D)the company's stock price goes down
A) As with most bonds, consider a bond with a face value of $1,000. The bond's...
A) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 22 years, the coupon rate is 12% paid annually, and the discount rate is 12%. What is this bond's coupon payment? B) A bond offers a coupon rate of 14%, paid semiannually, and has a maturity of 6 years. Face value is $1,000. If the current market yield is 5%, what should be the price of this bond?
If the market price of a bond​ increases, then the​ bond's ____________ will decrease.
If the market price of a bond​ increases, then the​ bond's ____________ will decrease.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT