For a $100 face value bond that pays $7 coupon annually, if market interest rates change from 8 to 9%? The coupon rate:
A: increases to 8%.
B: increases to 9%.
C: remains at 7%.
D: increases to nearly 9%.
A: increases to 8%.
B: increases to 9%.
C: remains at 7%.
D: increases to nearly 9%.
举一反三
- 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
- If the annual market discount rate is 6%, the value of a three-year bond that has a 7% coupon rate, has a maturity (par) value of $1,000, and pays interest annually is closest to: A: $1,026.73. B: $1,049.17. C: $973.76.
- A<br/>coupon bond that pays interest annually is selling at a par value of<br/>$1,000, matures in five years, and has a coupon rate of 9%. The yield<br/>to maturity on this bond is ________ A: 8.0%. B: 8.3%. C: 9.0%. D: 10.0%. E: None<br/>of the options are correct.
- A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays interest annually and matures in three years. If the required rate of return on the bond is 5%, the price of the bond per 100 of par value is closest to
- A five-year treasury bond with a coupon rate of 8 percent has a face value of $1,000. What is the semiannual interest payment? A: $80 B: $40 C: $100 D: $50