Question 1A bond that has a yield to maturity greater than its coupon interest rate will sell for a price:A. below par.B. at par.C. above par.D. that is equal to the face value of the bond plus the value of all interest payments.Question 2Which of th
Question 1A bond that has a yield to maturity greater than its coupon interest rate will sell for a price:A. below par.B. at par.C. above par.D. that is equal to the face value of the bond plus the value of all interest payments.Question 2Which of the following is not one of the components that makes up the required rate of return on a bond?A. Risk premiumB. Real rate of returnC. Inflation premiumD. Maturity paymentQuestion 3A 20-year bond pays 12% on a face value of $1000. If similar bonds are currently yielding 9% What is the market value of the bond? Use annual analysis.A. over $1000B. under $1000C. over $1200D. Not enough information given to tellQuestion 4A ten-year bond with par value equals $1000 pays 10% annually. If similar bonds are currently yielding 6% annually what is the market value of the bond? Use semi-annual analysis.A. $1000B. $1127.50C. $1297.85D. $2549.85