Which of the following risk-free, zero-coupon bonds could be bought for the lowest price?
A: one with a face value of $1,000, a YTM of 4.8%, and 5 years to maturity
B: one with a face value of $1,000, a YTM of 3.2%, and 8 years to maturity
C: one with a face value of $1,000, a YTM of 6.8%, and 10 years to maturity
D: one with a face value of $1,000, a YTM of 5.9%, and 20 years to maturity
A: one with a face value of $1,000, a YTM of 4.8%, and 5 years to maturity
B: one with a face value of $1,000, a YTM of 3.2%, and 8 years to maturity
C: one with a face value of $1,000, a YTM of 6.8%, and 10 years to maturity
D: one with a face value of $1,000, a YTM of 5.9%, and 20 years to maturity
举一反三
- Which of the following $1,000 face value securities has the highest yield to maturity?
- Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par. Given this, which one of the following statements is correct?
- If a $5,000 face value discount bond maturing in one year is selling for $5,000, then its yield to maturity is _________
- A discount bond ( ). A: is also called a zero-coupon bond. B: is bought at a price below its face value C: its face value is repaid at the maturity date. D: is also called simple payment bond.
- Which of the following statements is FALSE? A: The amount of each coupon payment is determined by the coupon rate of the bond. B: Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value. C: The simplest type of bond is a zero-coupon bond. D: Treasury bills are U.S. government bonds with a maturity of up to one year.