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For an investor who plans to purchase a bond that matures in one year, the primary concern should be?
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- For an investor who plans to purchase a bond that matures in one year, the primary concern should be Select one: a. Interest rate risk b. Coupon rate risk c. Exchange rate risk d. Yield to maturityFor an investor who plans to purchase a bond that matures in one year, the primary concern should be Select one: a. Yield to maturity b. Interest rate risk c. Coupon rate risk d. Exchange rate risk Clear my choiceTrue or false? the YTM is the annual return that an investor earns on a bond of the investor purchases the bond today and sells it before maturity
- 6. For an investor who plans to purchase a bond maturing in one year, the primary consideration should be ________. A) retained earnings B) face value C) yield to maturity D) net incomeWhich has morereinvestment rate risk: a 1-year bond or a 10-yearbond?Which of the following statements describes money market securities? Group of answer choices Money market securities are long-term claims with an original maturity that is generally more than one year. Money market securities are short-term claims with an original maturity that is generally two years or less. Money market securities are short-term claims with an original maturity that is generally six months or less. Money market securities are short-term claims with an original maturity that is generally one year or less.
- If a bond will pay an investor RM1,000 upon maturity, explain why the investor would ever be willing to pay a premium to purchase it today.An investor wants to know the YTM on an 8-year, 7% bond selling for 88.95% of its parvalue before investing in it. What is the bond’s YTM.Which bond should an investor choose when bond A guarantees 12% interest after 2 years while bond B gives 8% interest per year? Group of answer choices a. Bond A b.Bond B c. Either A or B d. Neither A or B
- Is a two-year term bond considered a short-term debt instrument?Can the following equation be used to find the value of a bond with N years to maturitythat pays interest once a year? Assume that the bond was issued several years ago.An investor is considering the purchase of a(n) 8.125%, 15-year corporate bond that's being priced to yield 10.125%. She thinks that in a year, this bond will be priced in the market to yield 9.125%. Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out.