Wednesday
October 1, 2014

Homework Help: Finance

Posted by Alice on Thursday, October 20, 2011 at 9:18pm.

Which of the following statments is CORRECT?

a. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par. The premium bond must have a lower current yeild and a higher capital gains yield than the par bond.

b. A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.

c. If a bond sells at par, then its current yield wii be less than its yield to maturity.

d. If a bond sell for less than par, then its yield to maturity is less than its coupon rate.

e. A discount bond's price declines each year until it matures, when its vaule equals its par value.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - An investor in the 28% tax bracket is trying to decide which of two ...
STOCKS & BONDS - Two years ago, Gamma Inc. sold a $250 million bond issue to ...
finance - 1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual ...
Finance - United Technology Corporation (UTC) has $40 million of convertible ...
Finance - .An investor in the 28 percent tax bracket is trying to decide which ...
Finance - An investor in the 28 percent tax bracket is trying to decide which of...
Fiance - ABC stock sells for $22 bucks a share. The company wants to sell 20 ...
Finance - Which of the following statements is CORRECT? a. Two bonds have the ...
Finance - Which of the following statements is CORRECT? a. Two bonds have the ...
Finance - Cosmic Communication Inc. is planning two new issues of 25-year bonds...

Search
Members