2. (T/F) A bond will trade at par at issuance and at maturity
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2. (T/F) A bond will trade at par at issuance and at maturity
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- For a standard corporate bond, when are the following characteristics of the bond determined? ······ The amount that the issuer returns to the bondholder, when the bond matures. The maturity date. The bond's market yield. The bond's market price. The price that the bondholder pays to the issuer to acquire the bond. The amounts of any interest payments. The bond's coupon rate. The dates of any interest payments. 1. 2. Fixed before the bonds are sold and does not change. Fixed when the bonds are sold and does not change. 3. Fluctuates continually.please explain properlyThe debt component of convertible bonds issued using IFRS is the a. present value of the future cash flows at the market interest rate b. present value of the future cash flows at the stated interest rate c. market value of similar bonds without a conversion feature d. same as the calculation for GAAP
- The interest rate written in the terms of the bond indenture is known as the 14 Select one: O a. coupon rate O b. stated rate. O c. nominal rate. O d. coupon rate, nominal rate, or stated rate.22.The market price of a bond issued at a discount is the present value of its principal amount at the market (effective) rate of interest a. minus the present value of all future interest payment at the market (effective) rate of interest. b. plus the present value of all future interest payments at the market (effective) rate of interest. c. plus the present value of all future interest payments at the rate of interest stated on the bond. d. minus the present value of all future interest payments at the rate of interest stated on the bond. For your answer, enter either a or b or c or d. Group of answer choices b a c dAt a bond's maturity, the bond issuer pays the bondholder the par value of the bond. True or False True False
- A bond that has only one payment, which occurs at maturity, defines which one of these types of bonds?Bonds can be rate bonds with a constant coupon rate over the life of the bond, or they can be rate bonds with a coupon rate that varies over time depending on the level of interest rates. A. floating B. zero C. fixedA4)
- A. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? 24 B. Were they issued at a discount or a premium?Question 4 Assuming a bond is issued at a discount, which of the following would definitely not change over the life of the bond? A The yield to maturity of the bond B The price of the bond C The coupon rate of the bond D The current yield of the bondA3) I need professional answer: What is the difference between duration and maturity of a bond? For what kind of bonds do they have the same value?