Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

0 Which of the following would not be listed on the face of a bond? a. The coupo

ID: 2787546 • Letter: 0

Question

0 Which of the following would not be listed on the face of a bond? a. The coupon interest rate. b. The maturity date. c. You bought AZQ Bond with a 9% coupon rate and 12 years to maturity originally at par for S 1,000 and now desire to sell it. The interest rate on bonds of equivalent risk is 10% This bond will sell at a. face value b. parity c. a premium d. a discount e. both a and b are correct Return on a bond measured as the coupon divided by the current price is called a. C. A stock market in which previously issued securities are traded among investors is called a. secondary market c. brokerage market its current market price. d. coupon payment. 11. 12. coupon rate current yield b. yield to maturity d. required return 13. b. primary market d. both b. and c. are correct 14. An agent who arranges security transactions among investors is referred to as a b. broker d. contractor dealer c. Commissioner

Explanation / Answer

10)

face of bond does not contain the current market price

choose c)

11)

since interest rate on bond is greater than coupon rate , the bond will sell at discount

choose d)

12)

current yield = coupon dividend/current price

choose c)

13)

choose c)

14)

choose b)