Which type of bond most likely earns interest on an implied basis?
A: Floater
B: Conventional bond
C: Pure discount bond
A: Floater
B: Conventional bond
C: Pure discount bond
举一反三
- When someone sells a bond at a discount, the holder of the bond earns ________ with the purchase. A: a capital gain B: a capital loss C: market value D: interest
- Which one of the following is issued at a discount to its redemption value and pays its holder no interest during its life? A: A deep discount bond B: A long-term bond issued by the government C: An unsecured loan note D: A zero coupon 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
- 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.
- 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