the current interest rate exceeds the bond’s coupon rate, the bond will sell at a ___________.
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Q: If the current interest rate exceeds the bond’s coupon rate, the bond will sell at a___________.
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A:
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- If the current interest rate exceeds the bond’s coupon rate, the bond will sell at a ___________.
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- . If the current interest rate exceeds the bond’s coupon rate, the bond will sell at a___________. The value of a bond to increase if there is a/an ________ in interest rates. A bond’s coupon rate is more than the interest rate, therefore the bond is selling at a_____________. As interest rate increases the value of a bond will ______________. If the bondholder’s required rate of return equals the coupon interest rate, the bond will sell at _________. A premium bond sells for ____________ as maturity approaches. The discount bond sells for ____________ as maturity approaches. A bondholder with a short-term bond is exposed to ___________ interest rate risk than when owing a long-term bond. When interest rates __________, the market required rates of return ________, and the bond prices will ________. If interest rates increase after a bond issue, the yield-to-maturity will ______,If the bondholder’s required rate of return equals the coupon interest rate, the bond will sell at _______________. A premium bond sells for ____________ as maturity approaches. The discount bond sells for ____________ as maturity approaches.A bond’s coupon rate is more than the interest rate, therefore the bond is selling at a _____________.
- If a coupon-paying bond is selling at a discount, the bond's yield to maturity will be _______ than the bond's coupon interest rate. less equal moreIf interest rates increase, after a bond is issued, the yield to maturity will _____________.The rate of return that you would earn if you bought a bond and held It to its maturity date is called the bond's yield to maturity (YTM). If Interest rates in the economy rise after a bond has been issued, what will happen to the bond's price and to Its YTM? Does the length of time to maturity affect the extent to which a given change in interest rates will affect the bond's price? Briefly explain with necessary numerical data.
- e. If the bondholder’s required rate of return equals the coupon interest rate, the bondwill sell at _________.d. As interest rate increases the value of a bond will ______________.e. If the bondholder’s required rate of return equals the coupon interest rate, the bondwill sell at _________.f. A premium bond sells for ____________ as maturity approaches.g. The discount bond sells for ____________ as maturity approaches.Which of the following is correct? O If you pay a price above its face value to buy a bond, your return will be higher than its coupon rate. O When market rate is greater than coupon rate, the bond has a price below its face value. O When determining the value of a bond that payments semi-annual payments, one need to use semi-annual coupon rate to determine the coupon payments and semi-annual market rate as discount rate.
- When interest rates __________, the market required rates of return ________, and the bond prices will ________. If interest rates increase after a bond issue, the yield-to-maturity will ______,A bond will sell at ____________ if the required return is greater than the coupon rate. Select one: a. A discount b. Liquidation value c. Par d. A premiumA bondholder with a short-term bond is exposed to ______________ interest rate risk than when owing a long-term bond. When interest rates __________, the market required rates of return ________, and the bond prices will ________.