What’s #11? 10. Which of the following wold lol De lnsi The coupon interest rate

Question

What’s #11? 10. Which of the following wold lol De lnsi The coupon interest rate. b. The maturity date. its current market price. d. coupon payment. a. c. You bought AZQ Bond with a 9% coupon rate and 12 years to maturity originally at par for S1 000 and now desire to sell it. The interest rate on bonds of equivalent risk is 1050·This bond will sell at a. c. Return on a bond measured as the coupon divided by the current price is called a. 1 1. face value b. a premium d. parity a discount e. both a and b are correct 12. coupon rate urrent vield b. yield to maturity d. required return nded among investors is called

Explanation / Answer

#11 d) a discount

This is because investors want a higher yield, which such a bond gives them, and thus they will pay more for it. A bond currently trading for less than its par value in the secondary market is a discount bond. A bond will trade at a discount when it offers a coupon rate that is lower than prevailing interest rates.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.