Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a promised yield to maturity of 4.3% and exactly 12 years to maturity. The present value of the coupon stream represents of the total bond's value. Multiple Choice 50.9% 52.0% 54.4% 53.1%

Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a promised yield to maturity of 4.3% and exactly 12 years to maturity. The present value of the coupon stream represents of the total bond's value. Multiple Choice 50.9% 52.0% 54.4% 53.1%

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 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

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Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a
promised yield to maturity of 4.3% and exactly 12 years to maturity. The present value of the coupon
stream represents
of the total bond's value. Multiple Choice 50.9% 52.0% 54.4% 53.1%

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