Business

Business, 31.07.2019 15:20, ahmetagayew2004

An old bond's market value is above its par value, the bond is selling at a this occurs because the old bond's coupon rate is the coupon rates of new bonds with similar risk. 1) premium; above 2) premium; below 3) discount; below 4) discount; above

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Business, 03.07.2019 01:20, karla21pilots

Long-term treasury bonds currently are selling at yields to maturity of nearly 6%. you expect interest rates to fall. the rest of the market thinks that they will remain unchanged over the coming year. in each question, choose the bond that will provide the higher capital gain if you are correct. a. an aaa-rated bond with coupon rate 6% and time to maturity 20 years. a baa-rated bond with coupon rate 6% and time to maturity 20 years. b. an a-rated bond with coupon rate 6% and maturity 20 years, callable at 105. an a-rated bond with coupon rate 4% and maturity 20 years, callable at 105. c. a 7% coupon t-bond with maturity 20 years and ytm = 6%. a 4% coupon t-bond with maturity 20 years and ytm = 6%.

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Business, 16.10.2019 20:10, dustinsampsin9029

Bond p is a premium bond with a coupon rate of 9 percent. bond d has a coupon rate of 5 percent and is currently selling at a discount. both bonds make annual payments, have a ytm of 7 percent, and have 10 years to maturity. a. what is the current yield for bond p and bond d? (do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. if interest rates remain unchanged, what is the expected capital gains yield over the next year for bond p and bond d?

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Business, 25.10.2019 19:43, anglegirl2313

A12-year bond has an annual coupon of 9%. the coupon rate will remain fixed until the bond matures. the bond has a yield to maturity of 7%. which of the following statements is correct? a. if market interest rates decline, the price of the bond will also decline. b. the bond is currently selling at a price below its par value. c. if market interest rates remain unchanged, the bond’s price one year from now will be lower than it is today. d. the bond should currently be selling at its par value. e. if market interest rates remain unchanged, the bond’s price one year from now will be higher than it is today.

Answers: 3

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Business, 25.10.2019 22:43, natnat55

A15-year bond has an annual coupon rate of 8%. the coupon rate will remain fixed until the bond matures. the bond has a yield to maturity of 6%. which of the following statements is correct? a. the bond is currently selling at a price below its par value. b. if market interest rates remain unchanged, the bond's price one year from now will be lower than it is today. c. the bond should currently be selling at its par value. d. if market interest rates remain unchanged, the bond's price one year from now will be higher than it is today. e. if market interest rates decline, the price of the bond will also decline.

Answers: 2

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An old bond's market value is above its par value, the bond is selling at a this occurs because the...

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