When you discount the future payments of a bond at a higher interest rate, you decrease the current value of the bond.
举一反三
- When you discount the future payments of a bond at a higher interest rate, you decrease the current value of the bond. A: 正确 B: 错误
- 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.
- When we choose a higher interest rate as the discount rate for bond valuation, it causes the bond to sell for a discount. A: 正确 B: 错误
- 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 bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of par value is closest to