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
A: a capital gain
B: a capital loss
C: market value
D: interest
举一反三
- Which type of bond most likely earns interest on an implied basis? A: Floater B: Conventional bond C: Pure discount bond
- 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
- If interest rates and risk factors are constant over a given period, then a fixed income bond trading at a discount will have a:（） A: positive current yield, only. B: negative current yield and a positive capital gain yield. C: positive current yield and a positive capital gain yield.
- 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
- When you discount the future payments of a bond at a higher interest rate, you decrease the current value of the bond.