Business, 22.04.2021 02:10, jessicajamah3289

(Finance) True or False: The risks of holding corporate bonds are of price, re-investment, default, and liquidity. The longer the maturity, the higher the re-investment risk and the lower the price risk.

A corporate bond issue of Aspire Inc. has a 3-year maturity with a 10% semiannual coupon on a $1,000 par value, and trades at a 10% YTMnow. The bond should trade at $1,000.

Acknowledge Inc.’s 15-year bond with a 10% coupon rate (annual payment) has 3 years until maturity and trades at a 13% YTM. This bond should trade at premium against its face value.

SBU Bank is on a sales campaign for an attractive bond issue: It pays 10% coupons annually on a $1,000 face value with a 3-year to maturity. On today’s Wall Street Journal, if you find that the bond’s last price is quoted at $930 with a reasonable required return at 12%, you should probably wait more to purchase the bond.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:20, rhettnyah

What is the most direct result of free trade supplying productive resources to areas where they're most needed? a. enhanced efficiency b. lower interest rates c. increasing specialization d. greater competition 2b2t

Answers: 3

continue

Business, 22.06.2019 17:00, justyne2004

Afinancing project has an initial cash inflow of $42,000 and cash flows of −$15,600, −$22,200, and −$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?

Answers: 1

continue

Business, 22.06.2019 18:10, maddihamidou

Consumers who participate in the sharing economy seem willing to interact with total strangers. despite safety and privacy concerns, what do you think is the long-term outlook for this change in the way we think about interacting with people whom we don't know? how can businesses to diminish worries some people may have about these practices?

Answers: 1

continue

Business, 22.06.2019 23:30, bellamyciana

Part 1: interview at least three different people you know that fall within three age ranges (25-35), (36-50), and (51-70) year of age. ask each person you interview if they have life insurance (term, whole life etc.) and health insurance. ask what factors influenced their decision to buy or not the insurance coverage? report your findings to this assignment. specify who the people were that you spoke with.\

Answers: 3

continue

Do you know the correct answer?

(Finance) True or False: The risks of holding corporate bonds are of price, re-investment, default...