• 2021-04-14
    The yield to maturity for a one - year discount bond equals _________
  • the increase in price over the year, divided by the initial price.

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    • 0

      The yield to maturity on a consol bond that pays $100 yearly and sells for $500 is _________

    • 1

      (I) A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment. (II) A coupon bond pays the lender a fixed interest payment every year until the maturity date, when a specified final amount (face or par value) is repaid.

    • 2

      A $10,000, 8 percent coupon bond that sells for $10,000 has a yield to maturity of _________

    • 3

      The ________ of a firm's debt can be used as the firm's current cost of debt. A: current yield B: coupon rate C: yield to maturity D: discount yield

    • 4

      The current yield for a 4.5% coupon, 10-year bond, with a maturity par value of $100 and currently priced at $85.70 is closest to