A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par ($1,100). Which of the following statement is correct? Selected Answer: The bond’s current yield is 5%. Answers: The bond’s yield to maturity is 3.78%. The bond’s current yield is 5%. If the bond’s yield to maturity remains constant, the bond’s price will remain at par. The bond’s capital gain yield is 0%
A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par ($1,100). Which of the following statement is correct? Selected Answer: The bond’s current yield is 5%. Answers: The bond’s yield to maturity is 3.78%. The bond’s current yield is 5%. If the bond’s yield to maturity remains constant, the bond’s price will remain at par. The bond’s capital gain yield is 0%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par ($1,100). Which of the following statement is correct? |
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