Question

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

Answer #1

The bond will sell at premium , not at discount.

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

1. A bond is issued at premium ________.
a. when a bond's stated interest rate is less than the market
interest rate
b. when a bond's stated interest rate is higher than the market
interest rate
c. when a bond's stated interest rate is less than the effective
interest rate
d. when a bond's stated interest rate is equal to the market
interest rate
2. Alexander Corp. has the following balances as on December 31,
2015:
Total Assets
$89,000
Total...

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 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 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 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. 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 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 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 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 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?

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