A credit market instrument that pays the owner the face value of the security at the maturity date and nothing prior to then is called a _________
举一反三
- A coupon bond pays the owner of the bond a fixed interest payment (coupon payment) every year until the maturity date, when a specified final amount (face value or par value) is repaid. （ ） A: True B: False
- (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.
- 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 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
- If the annual market discount rate is 6%, the value of a three-year bond that has a 7% coupon rate, has a maturity (par) value of $1,000, and pays interest annually is closest to: A: $1,026.73. B: $1,049.17. C: $973.76.