Question

A 15-year bond with a face value of $1,000 currently sells for $1050. Which of the following statements is CORRECT?

a. The bond's current yield exceeds its coupon rate

b. the bond's current yield is less than its yield to maturity

c. the bond's yield to maturity is less than its coupon rate

d. the bond's current yield is equal to its coupon rate

e. if the yield to maturity stays constant until the bond matures, the bond's price will go up

Answer #1

A 15-year bond with a face value of $1,000 currently sells for
$850. Which of the following statements is CORRECT?
The bond’s coupon rate exceeds its current yield.
The bond’s current yield exceeds its yield to maturity.
The bond’s yield to maturity is greater than its coupon
rate.
The bond’s current yield is equal to its coupon rate.
If the yield to maturity stays constant until the bond matures,
the bond’s price will remain at $850.

A bond is currently priced at $1050 on a par value of $1,000.
Its term to maturity is 20 years and its coupon rate is 8% (stated
annually, paid semiannually). If you buy the bond, and hold it to
maturity, what would be the yield to maturity?

If a bond with face value of $1,000 and a coupon rate of 8% is
selling at a price of $1,070, which of the following regarding the
bond's yield to maturity is correct?
Yield to maturity is less than 8%.
Yield to maturity is more than 8%.
Yield to maturity equals 8%.
None of the above is correct.

A 10 year Treasury bond with face value of $1000 is currently
offering 8% annual coupon rate and 6% yield to maturity. Which of
the following statements about the bond is NOT true?
The market price of bond is higher than $1000.
A year from now if the yield to maturity stays the same, the
market price of the bond will be higher than what it is today.
If you buy the bond today and hold it until the bond...

17.
Assume a semi-annual coupon bond matures in 3 years, has a
face value of $1,000, a current market price of $989, and a 5
percent coupon. Which one of the following statements is correct
concerning this bond?
A.
The current coupon rate is greater than 5 percent.
B.
The bond is a money market instrument.
C.
The bond will pay less annual interest now than when it was
originally issued.
D.
The current yield exceeds the coupon rate.
E....

A 1,000 dollar face value bond currently has a yield to maturity
of 5.47 percent. The bond matures in 25 years and pays interest
semiannually. The coupon rate is 8.25 percent. Whaat is the current
price of bond

Consider a bond with a
6%
annual coupon and a face value of
$900.
Complete the following table. (Enter your responses rounded
to two decimal places.)
Years to Maturity
Yield to Maturity
Current Price
2
4%
?
2
6%
?
3
6%
?
5
4%
?
5
8%
?
When the yield to maturity is
▼
less than
greater than
equal to
the coupon rate, the bond's current price is below its face
value. For a given maturity, the bond's...

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 15-year, semiannual coupon bond sells for $985.72. The bond
has a par value of $1,000 and a yield to maturity of 6.57 percent.
What is the bond's coupon rate?

A bond pays an annual coupon on a face value of $1,000. The bond
is currently trading at $950 and its yield is 7%. I buy the bond
today and sell it immediately after I receive the next coupon one
year from now, at which time its yield is still 7%. If my capital
gain is 5%, then what is the bond's coupon rate?

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