Coupon Payment is calculated: O a. Adding Coupon Rate with Face value O b. It is the Coupon Rate only O c. Dividing Coupon Rate upon Face value O d. Multiplying Coupon Rate with Face value

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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QUESTION 1
Coupon Payment is calculated:
O a. Adding Coupon Rate with Face value
O b. It is the Coupon Rate only
O c. Dividing Coupon Rate upon Face value
O d. Multiplying Coupon Rate with Face value
Transcribed Image Text:QUESTION 1 Coupon Payment is calculated: O a. Adding Coupon Rate with Face value O b. It is the Coupon Rate only O c. Dividing Coupon Rate upon Face value O d. Multiplying Coupon Rate with Face value
QUESTION 2
"Consider a bond with a 10% annual coupon rate, 15 years to maturity and a par value of $1000, The YTM is
11%. Which of the following is NOT true about this bond."
O a. Bond price will be less than $1000
Ob. Bond is issues at Discount
O c. Bond will give 15 annual coupon payments
Od. Bond is issued at Premium
Transcribed Image Text:QUESTION 2 "Consider a bond with a 10% annual coupon rate, 15 years to maturity and a par value of $1000, The YTM is 11%. Which of the following is NOT true about this bond." O a. Bond price will be less than $1000 Ob. Bond is issues at Discount O c. Bond will give 15 annual coupon payments Od. Bond is issued at Premium
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