Yield to maturity The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For the bond listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount to par. Coupon interest rate Yield to maturity 10% 8% What is the price of the bond in relation to its par value? (Select the best answer below.) OA. The bond sells at a discount to par. OB. The bond sells at par. OC. The bond sells at a premium to par.
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- THe relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For the bond listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount par. Coupon Interest Rate Yield to Maturity 8% 6%Yield to maturity The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For the bond listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount to par. Coupon interest rate 12% Yield to maturity 6% What is the price of the bond in relation to its par value? (Select the best answer below.) O A. The bond sells at a premium to par. OB. The bond sells at a discount to par. O C. The bond sells at par.Yield to maturity The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For the bond listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount to par. Coupon interest rate Yield to maturity 6% 8% What is the price of the bond in relation to its par value?(Select the best answer below.) A.The bond sells at a premium to par. B.The bond sells at par. C.The bond sells at a discount to par.
- he yield that a bond will earn given that it is bought back by the issuer at the earliest possible date is the: Select one: a. current yield b. yield to maturity c. yield to put d. market yield e. yield to callThe formula for the yield to maturity, i, on a discount bond is (Points : 1)i = (Face value – Discount price)/Discount price.i = (Discount price – Face value)/Discount price.i = (Face value – Discount price)/Face value.i = (Discount price – Face value)/Face valueTo calculate the price of a coupon bond, the following information is required: Select one: O A. Face value of the bond, yield to maturity rate, maturity date and inflation rate. O B. Face value of the bond, yield to maturity rate, maturity date, coupon rate and inflation. O C. Face value of the bond, inflation rate, coupon rate and coupon rate. O D. Face value of the bond, yield to maturity rate, maturity date and coupon rate.
- A bond's real rate of return is reflected by the bond's 1). YTM 2). Coupon Rate 3). Par Value 4). Selling Price 5). Redemption Valuethe par value. When the is higher than the coupon rate, the bond sells at a O a. time to maturity; premium over O b. time to maturity; discount to Oc yield to maturity; premium over O d. yield to maturity; discount to CONTACT US 2 Type here to search WThe yield to maturity on bonds is usually the same as a. yield to call. b. current yield. c. the market rate of interest. d. the coupon rate of interest.
- For a discount bond, the current yield isthe yield to maturity, and the coupon rate is the yield to maturity. Select one: O a. less than; less than O b. equal to; equal to O c less than; greater than O d. greater than; greater than O e. greater than; less thanThe formula (Coupon Payment / Current bond price) calculates the _______. Multiple Choice Current yield. Risk-free rate. Coupon rate. Yield to maturity Bond premium.Can the price of bond B be determined using the PV function or any other function in excel? What is the EAR (effective annual rate) of these two bonds?