Question

1. The face value of the bond is paid at the maturity of the bond. True or false?

2. Which of the following is used as a discount rate while calculating the bond price?

Yield to Maturity (YTM) |
||

Coupon Rate |
||

Face Value |
||

None |

3. Coupon payments are determined by multiplying face value of the bond with the coupon rate. True or false?

4. Which of the following explains the differences in interest rates?

The length of the investment (maturity premium). |
||

The level of risk of the investment (default premium). |
||

Both the level of risk of the investment (default premium) and the length of the investment (maturity premium). |
||

None |

Answer #1

**Answers-**

**Q1)**

**The statement is True.**

**The face value or par value of the bond is paid at the
maturity of the bond.**

**Q 2)**

**The correct option is Yield to Maturity
(YTM).**

**YTM is discount rate while calculating the bond
price.**

**The other Options are incorrect.
The Coupon rate is the rate that is used in payments that are made
annually or semiannually for coupon bonds.
The Face value is the Par value that is paid at
maturity.**

**Q 3)**

**The statement is True.
Coupon payments ($) = Coupon rate (%) x Face value ($)**

**Q 4)**

**The correct option is third Option.**

**Both the level of risk of the investment (default
premium) and the length of the investment (maturity
premium).**

**Interest rate = Real risk-free interest rate + Inflation
premium + Default risk premium + Liquidity premium + Maturity
premium**

The face value of the bond is paid at the maturity of the
bond.
True
False
Which of the following is used as a discount rate while
calculating the bond price?
Yield to Maturity (YTM)
Coupon Rate
Face Value
None
Coupon payments are determined by multiplying face value of the
bond with the coupon rate.
True
False
Which of the following explains the differences in interest
rates?
The length of the investment (maturity premium).
The level of risk of the...

Which of the following is true? A. When all others (face value,
coupon payment, maturity, and default risk) are equal, a callable
bond is cheaper than a regular bond. B. Convertible bonds favor
issuers while callable bonds favor buyers. C. Both A and B. D. None
of above.

1. A semiannual coupon bond with a coupon rate of 7% and face
value of $1000 trades at $1250. It matures in 12 years. What is its
yield to maturity (YTM)? Answer in percent and round to two decimal
places.
2. A 5 year semiannual coupon bond with a face value of $1,000
trades at $902. The market-determined discount rate is 7%. What is
the coupon rate? Answer in percent and round to two decimal
places.

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 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

Mr.
Bond is considering purchasing a bond with 10-year maturity and
$1,000 face value. The coupon interest rate is 8% and the interest
is paid annually. If Mr. Bond requires 11% yield to maturity (YTM)
on the investment, then the price of the bond
is:
$877.11
$773.99
$1,122.87
$823.32

True or false: A bond with a face value of $1,000 will have a
current price of $1,000 if the coupon rate is equal to the yield to
maturity.

Consider the following bond issued by
Walmart: coupon rate: 4.828% face value: $1,000 maturity date:
July 15, 2040 semi-annual coupons settlement date: March 8, 2020
yield (YTM): 4.164% most recent coupon payment date: January 15,
2020
What is the value of the bond? (Equivalently, we are calculating
the “dirty price”.) Express your answer as the dollar and cents
price for a bond with $1,000 face value.

Which one of the following statements is true? Question 13
options: 1) A premium bond has a yield to maturity that is less
than the bond's coupon rate. 2) A discount bond has a coupon rate
that is higher than the bond's yield to maturity. 3) The yield to
maturity on a premium bond exceeds the bond's coupon rate. 4) The
current yield on a par value bond will exceed the bond's yield to
maturity. 5) The current yield on...

A bond has a 10 year maturity, a $1000 face value, and a 7%
coupon rate. If the market requires a yield of 8% on similar bonds,
it will mostly trade at a:
A. discount
B. premium
C. discount or premium, depending on its duration
Please give example, such as calculation and so on...

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