#7

The rate of interest actually earned by bondholders is called the Select one: O a. effective rate. O b. stated rate. O c. effective yield or market rate. O d. yield rate.

he interest rate used to calculate the present value of a bond's cash flows is often referred to as the:Group of answer choices dividend rate. discount rate. multiplier. yield to maturity

What is the relationship between bond price and interest rate? Describe in fully how this relationship was made. What approach may we use to calculate the bond's value based on the relationship?

What is the relationship between bond prices and interest rates?  Verbally describe how this relationship comes about. How can we use this relationship to estimate the value of a bond?

The market interest rate... Select the word list below: is the contractual interest rate used to determine the amount of cash interest the borrower. is listed by the bond indenture. is the rate investors demand for loaning funds Answer is the rate investors demand for loaning funds paid by

Two interest rates are associated with pricing a bond.  Name and describe each.  How are they used ?

Describe in detail the key features of a bond (face value, maturity, coupon rate, coupon, yield to maturity, current yield). What are the cash flows associated with a bond? What is a discount bond? Premium bond? Par bond? How does the price of a bond vary in relationship to market rates?

Which of the following does not impact the calculation ofthe cash interest payments to be made to bondholders?a. Face value of the bond.b. Stated interest rate.c. Market interest rate.d. The length of time between payments.

Which of the following measures the interest rate risk of a bond in dollars and cents? O Price Value of a Basis Point O Convexity O Modified Duration Duration.

All of the following refer to the face rate of interest on a bond except: a. stated rate b. effective rate c. nominal rate d. coupon rate

How does one determine the required rate of return of a bond, the cash flows of a bond and the value of a bond?  How do you determine if a bond is a good investment? Are long-term bonds riskier than short-term bonds? Explain and Discuss.

When determining how to compute the present value of a bond, the buyer computes the ________. Group of answer choices present value of the interest discounted at the market rate and the present value of the par value discounted at the stated rate future value of the par value and interest discounted at the stated interest rate present value of the par value discounted at the market rate and the present value of the interest discounted at the stated rate present value of the par value and the present value of the interest discounted at the market interest rate