A bond sold five weeks ago for $950.The bond is worth $900 in today's market.The face value of the bond is $1,000.Assuming no changes in risk,which of the following is mostly likely true?
A) The coupon rate increased.
B) Interest rates are lower now than they were five weeks ago.
C) The bond is within one year of maturity.
D) The issuer threatened to call the bond at 110% of par value.
E) Interest rates are higher now than they were five weeks ago.
Correct Answer:
Verified
Q45: The yield to maturity for a bond
Q46: Consider a 35 year coupon bond with
Q47: What is the value of a six-year,6%
Q48: What is the price of a four-year,10%
Q49: The _ is the percentage return an
Q51: What is the value of a 25-year
Q52: What is the price of a five-year
Q53: What is the yield to maturity of
Q54: What is the yield to maturity of
Q55: Fortunate Frames Inc.just issued 20-year,6% coupon bonds
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents