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A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years ago and has 7 years remaining to maturity. The current market price for the bond is $1,000. Which of the following is true: I. Its YTM is 10%. II. Bond's coupon rate is 10%. III. The bond's market quote is 95.70. (Note: Market quote is the market price as a percent of the face value.) A. III Only B. II, III Only OC. I, II Only D. I, III Only E. I. II. and III

A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years ago and has 7 years remaining to maturity. The current market price for the bond is $1,000. Which of the following is true: I. Its YTM is 10%. II. Bond's coupon rate is 10%. III. The bond's market quote is 95.70. (Note: Market quote is the market price as a percent of the face value.) A. III Only B. II, III Only OC. I, II Only D. I, III Only E. I. II. and III

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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QUESTION 2 A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years ago and has 7 years remaining to maturity. The current market price for the bond is $1,000. Which of the following is true: I. Its YTM is 10%. II. Bond's coupon rate is 10%. III. The bond's market quote is 95.70. (Note: Market quote is the market price as a percent of the face value.) A. III Only B. II, III Only C. I, II Only OD. I, III Only O E. I, II, and III F. I Only
Transcribed Image Text:QUESTION 2 A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years ago and has 7 years remaining to maturity. The current market price for the bond is $1,000. Which of the following is true: I. Its YTM is 10%. II. Bond's coupon rate is 10%. III. The bond's market quote is 95.70. (Note: Market quote is the market price as a percent of the face value.) A. III Only B. II, III Only C. I, II Only OD. I, III Only O E. I, II, and III F. I Only
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