举一反三
- The initial offer price for the target firm is defined as A: The minimum price B: The present value of the minimum price plus some fraction of the present value of net synergy C: The present value of net synergy plus the current market value of the target firm D: The maximum price less the minimum price E: The maximum price less the present value of net synergy
- As the coupon rate of a bond increases, the bond's:() A: face value increases B: current price decreases C: interest payments increase D: maturity date is extended
- A coupon bond pays the owner of the bond a fixed interest payment (coupon payment) every year until the maturity date, when a specified final amount (face value or par value) is repaid. （ ） A: True B: False
- The value of a 10-year, 6% coupon $100 par value bond with semiannual payments, assuming an annual discount rate of 7%, is closest to
- The coupon rate of bond is the interest rate specified in the bond, which is equal to the ratio of the annual interest over the value of bond.
内容
- 0
(I) A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment. (II) A coupon bond pays the lender a fixed interest payment every year until the maturity date, when a specified final amount (face or par value) is repaid.
- 1
A three-year bond with 10 percent coupon rate and $1,000 face value yields 8 percent. Assuming annual coupon payments, calculate the price of the bond. A: $857.96 B: $951.96 C: $1,000.00 D: $1,051.54
- 2
The profitability index is the ratio of the A: future value of cash flows to investment. B: net present value of cash flows to investment. C: net present value of cash flows to IRR. D: present value of cash flows to IRR.
- 3
The current yield for a 4.5% coupon, 10-year bond, with a maturity par value of $100 and currently priced at $85.70 is closest to
- 4
When you discount the future payments of a bond at a higher interest rate, you decrease the current value of the bond.