The dirty, or full, price of a bond:（）
A: applies if an issuer has defaulted.
B: equals the present value of all cash flows, plus accrued interest.
C: is paid when a security trades ex-coupon.
A: applies if an issuer has defaulted.
B: equals the present value of all cash flows, plus accrued interest.
C: is paid when a security trades ex-coupon.
举一反三
- A bond's current market value is equal to the present value of the coupon payments plus the present value of the face amount.
- 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
- 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.
- 4, rate is the yield paid by a fixed income security, which is the annual coupon payments by the issuer relative to the bond’s face or par value.
- A bond with two years remaining until maturity offers a 3% coupon rate with interest paid annually. At a market discount rate of 4%, the price of this bond per 100 of par value is closest to: A: 95.34. B: 98.00. C: 98.11.