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% What is the price of the bond in relation to its par value? (Select the best answer below.) OA. The bond sells at a premium to par. OB. The bond sells at a discount to par. OC. The bond sells at par. Yield to maturity 6%
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- 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.) O A. The bond sells at a discount to par. OB. The bond sells at par. OC. The bond sells at a premium to 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.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% 10% What is the price of the bond in relation to its par value? (Select the best answer below.) A. The bond sells at par. B. The bond sells at a premium to par. O C. The bond sells at a discount to par.
- 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%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 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 W
- What relationship between the required return (ytm) and the coupon interest will cause a bond to: a) Be priced at a discount¿ FALL2022 b) Be priced at a premium? c) Be priced at its par value?A bond has a market price that exceeds its face value. Which one of these features currently applies tothis bond?Select one:a. Yield to maturity less than the coupon rate.b. Currently selling at par.c. Current yield greater than coupon rate.d. Yield to maturity equal to the current yield.e. Discount bond.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 Value
- A bond has a market price that exceeds its face value. Which one of these features currently applies to this bond? Group of answer choices Yield to maturity greater than coupon rate. Currently selling at par. Yield to maturity less than the coupon rate. Yield to maturity equal to the coupon. Discount bond.Which of the following is TRUE about a bond's face (par) value? Select one: a. the face value of a bond is the same as the bond's price b. the par value of a bond is the interest payment c. the face value of a bond changes when yields change d. the value of a bond will always be equal to par at maturity.The 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 value