Finance

Which of the following statements about the relationship between yield to maturity and bond prices is FALSE?
A. When the yield to maturity and coupon rate are the same, the bond is called a par value bond.
B. A bond selling at a premium means that the coupon rate is greater than the yield to maturity.
C. When interest rates go up, bond prices go up.
D. A bond selling at a discount means that the coupon rate is less than the yield to maturity.

  1. 👍 0
  2. 👎 3
  3. 👁 657

Respond to this Question

First Name

Your Response

Similar Questions

  1. Banking Finance

    A 10-year bond of face value 100 CCU and coupon rate of 8% was issued exactly six years ago. If the yield to maturity today is 7%, what would be the price of the bond today?

  2. Math

    The Garraty company has two bond issues outstanding. Both bonds pa $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S a maturity of 1 year. A). What will be the value of each of these bonds

  3. finance

    1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual coupon, and a par value of $1,000. The market interest rate (r) is 6%, based on semiannual compounding. What is the bond’s price? 2. A 20-year, $1,000 par

  4. Accounting

    Go to Table 10-1 which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent: A. What is the bond price at 11%? B. What is the bond

  1. Finance

    A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.

  2. Finance

    A 10-year bond of face value 100 CCU and coupon rate of 8% was issued exactly six years ago. If the yield to maturity today is 7%, what would be the price of the bond today?

  3. Finance

    A 20-year, $1,000 par value bond has a 9% annual coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price be 5 years from now

  4. FINANCE

    10. Bond prices and interest rate An 8 percent coupon bond with 15 years to maturity is priced to offer a 9 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.5 percent. What is the change in

  1. Math

    Go to Table 10-1 which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent: A. What is the bond price at 11%? B. What is the bond

  2. math

    Consider an 8% coupon bond selling for $953.10 with three years until maturity making annual coupon payments. The interest rates in the next three years will be, with certainty, r1 = 8%, r2 = 10%, and r3 = 12%. Calculate the yield

  3. Finance

    A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.

  4. Finance

    A 7.10 percent coupon bond with 14 years left to maturity is priced to offer a yield to maturity of 7.9 percent. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will

You can view more similar questions or ask a new question.