Question

A discount bond: Select one: a. Has a coupon rate which is greater than the yield...

A discount bond:

Select one:

a. Has a coupon rate which is greater than the yield to maturity.

b. Has a par value which is less than the market value.

c. Has a coupon rate which is less than the market rate of interest.

d. Is selling for more than face value.

e. Is the name given to a bond that has been called prior to maturity.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: Has a coupon rate which is less than the market rate of interest.

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
Question 1 of 71 The yield to maturity on a coupon bond is … ·      always greater...
Question 1 of 71 The yield to maturity on a coupon bond is … ·      always greater than the coupon rate. ·       the rate an investor earns if she holds the bond to the maturity date, assuming she can reinvest all coupons at the current yield. ·      the rate an investor earns if she holds the bond to the maturity date, assuming she can reinvest all coupons at the yield to maturity. ·      only equal to the internal rate of return of a bond...
When the discount rate or yield to maturity is lower than the coupon rate the bond...
When the discount rate or yield to maturity is lower than the coupon rate the bond price is less than its par value. a. True b. False
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
All else constant, a coupon bond that is selling at a discount must have A. a...
All else constant, a coupon bond that is selling at a discount must have A. a coupon rate that is equal to the bond yield B. a bond yield that is less than the coupon rate C. a market price that is higher than face value D. semi-annual coupon payments E. a coupon rate that is less than the bond yield
Which of the following is (are) true? A) If the yield to maturity is greater than...
Which of the following is (are) true? A) If the yield to maturity is greater than the coupon rate, the bond will sell at a premium. B) If the yield to maturity is less than the coupon rate, the bond will sell at a premium. C) Market prices and interest rates are positively correlated. D) all of the above
A) A Norwegian “oil”-bond has a 12 % coupon rate, matures in 20 years and pays...
A) A Norwegian “oil”-bond has a 12 % coupon rate, matures in 20 years and pays interest semi-annually. The face value is 1,000 NOK. What is the current price of this “oil”-bond if the market rate of return (e.g. the discount rate) is 8 %? B) Is this bond selling at par, premium or discount? C) What is the current yield? D) Is the yield to maturity (YTM) for this bond higher or lower than the current yield?
1,The carrying value of a bond issued at a discount is its face value less the...
1,The carrying value of a bond issued at a discount is its face value less the unamortized portion of the discount?True or false? 2. What happens to the carrying value of bonds issued at a premium over the life of the bond issued ? a.decreases b.decreases c.stays the same 3.the issuance price on bonds sold at par value is a. less than the face value b. equal to the face value c. greater than the face value d. not determinable...
A $1,000 face value bond currently has a discount rate (yield-to-maturity) of 6.69 percent. The bond...
A $1,000 face value bond currently has a discount rate (yield-to-maturity) of 6.69 percent. The bond matures in three years and pays coupon annually. The coupon rate is 7 percent. What type of bond it is? Group of answer choices Premium bond Discount bond Par bond Zero-coupon bond
A premium bond has a coupon rate greater than the required rate of return and the...
A premium bond has a coupon rate greater than the required rate of return and the fair present value of the bond is lesser than the face or par value. True False
Suppose a​ seven-year, $1,000 bond with a 7.6% coupon rate and semiannual coupons is trading with...
Suppose a​ seven-year, $1,000 bond with a 7.6% coupon rate and semiannual coupons is trading with a yield to maturity of 6.54%. a. Is this bond currently trading at a​ discount, at​ par, or at a​ premium? Explain. b. If the yield to maturity of the bond rises to 7.33% (APR with semiannual​ compounding), what price will the bond trade​ for? a. Is this bond currently trading at a​ discount, at​ par, or at a​ premium? Explain.  ​(Select the best...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT