finance 3313

The coupon rate of a bond equals: a percentage of its face value
A bond’s PAR VALUE can also be called its: FACE value
Which of the following is fixed (e.g., cannot change) for the life of a given bond? coupon rate
Which of the following identifies the distinction between a U.S. Treasury bond and a Treasury note? Bonds initially have more than 10 years until maturity; notes have fewer than 10 years initially.
What happens when a bond’s expected cash flows are discounted at a rate lower than the bond’s couponrate? The price of the bond increases.
6. If the coupon rate is lower than current interest rates, then the yield to maturity will be: higher than the coupon rate
When market interest rates exceed a bond’s coupon rate, the bond will sell for less than par value
1. Periodic receipts of interest by the bondholder are known as: coupon payments
The discount rate that makes the present value of a bond’s payments equal to its price is termed the: yield to maturity
3. How does a bond dealer generate profits when trading bonds? By maintaining bid prices lower than ask prices
When market interest rates exceed a bond’s coupon rate, the bond will: sell for less than par value.
Which of the following is correct for a bond currently selling at a premium to par? Its current yield is lower than its coupon rate.

Leave a Reply

Your email address will not be published. Required fields are marked *