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

6. The issuer of a bond determines the: A) Par value, coupon rate and market val

ID: 2792914 • Letter: 6

Question

6. The issuer of a bond determines the: A) Par value, coupon rate and market value B) Yield to maturity, coupon rate, and par value C) Maturity, coupon rate, and par value D) Yield to maturity and coupon rate E) None of the above 7. Calculate the ex-dividend price immediately after a $2.40 dividend was paid on a preferred stock having a zer dividend growth rate per period and a discount rate of ten percent per period. A)$10 B) $12 C) $20 D) $22 E) $24 8. Calculate the ex-dividend price immediately after a $3.60 dividend was paid on a common stock having a constant dividend growth rate of three-percent per perio and a discount rate (required return) of 9-percent per period. A) $61.8 B) $60 C) $56.4 D) $41.2 E) $40

Explanation / Answer

6)

Issuer of determines only the things he can determinate. These are maturity period of the bonds, coupon rate, frequency of payments and par value.

Hence, correct option is (C).

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Chat Now And Get Quote