Business
Business, 31.07.2019 15:00, IsabelAyshi

If the coupon rate on an outstanding bond is lower than the relevant current interest rate, then the yield to maturity would be

answer
Answers: 1
Show answers

Similar questions

Предмет
Business, 30.09.2019 21:00, cravens511peeelg
Which of the following statements is correct? a. corporate treasurers dislike issuing callable bonds because these bonds may require the company to raise additional funds earlier than would be true if noncallable bonds with the same maturity were used. b. the actual life of a callable bond will always be equal to or less than the actual life of a noncallable bond with the same maturity. therefore, if the yield curve is upward sloping, the required rate of return will be lower on the callable bond. c. a callable 10-year, 10% bond should sell at a higher price than an otherwise similar noncallable bond. d. two bonds have the same maturity and the same coupon rate. however, one is callable and the other is not. the difference in prices between the bonds will be greater if the current market interest rate is below the coupon rate than if it is above the coupon rate. e. two bonds have the same maturity and the same coupon rate. however, one is callable and the other is not. the difference in prices between the bonds will be greater if the current market interest rate is above the coupon rate than if it is below the coupon rate.
Answers: 2
continue
Предмет
Business, 29.10.2019 04:31, shaheedbrown06
A15-year bond with a face value of $1,000 currently sells for $850. which of the following statements is correct? explain how also. select one: a. the bond's coupon rate exceeds its current yield. b. the bond's current yield exceeds its yield to maturity. c. the bond's yield to maturity is greater than its coupon rate. correct 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 remain at $850.
Answers: 2
continue
Предмет
Business, 08.11.2019 02:31, astultz309459
Which one of the following statements is true? a) the current yield on a par value bond will exceed the bond's yield to maturityb) the yield to maturity on a premium bond exceeds the bond's coupon ratec) the current yield on a premium bond is equal to to the bond's coupon rated) a premium bond has a current yield that exceeds the bond's coupon ratee) a discount bond has a coupon rate that is less than the bond's yield to maturity
Answers: 1
continue
Do you know the correct answer?
If the coupon rate on an outstanding bond is lower than the relevant current interest rate, then the...

Questions in other subjects:

Konu
English, 18.11.2020 14:00
What is Opportunity cost and provide an example (own words)...
Konu
Biology, 18.11.2020 14:00
1.Write the word equation for the fermentation process that occurs in the paddy plant Cells 2.suggest another cell that can carry out the fermentation processes as in question (1)...
Konu
English, 18.11.2020 14:00
What were some of the treatments for intellectual disabilities...
Konu
Mathematics, 18.11.2020 14:00
Convert 6¼ % into decimal...
Konu
Biology, 18.11.2020 14:00
What two recurring events in earth history have impact on the carbon cycle...
Konu
Biology, 18.11.2020 14:00
Students show necessary work where units are being converted and canceled properly...
Konu
Social Studies, 18.11.2020 14:00
What changes did the Age of Steam Power Bring...
Konu
Mathematics, 18.11.2020 14:00
12. Using the equation y = -4(x + 2) give the: a. x intercept b. y intercept...
Konu
Physics, 18.11.2020 14:00
Which of the following statements is correct? The paired lungs are located in the thoracic cavity and separated from each other by the mediastinum. The parietal pleura...
Konu
English, 18.11.2020 14:00
When writing theletter, a person may need to include references. A.) order B.) application C.) adjustment...
Other tasks in the category: Business More task
See results (0)