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Quiz 5: Bond Prices and Interest Rate Risk
A $1000 Bond with an 8
Question 36
Multiple Choice
A $1000 bond with an 8.2% coupon rate, interest paid semiannually, and maturing in six years is currently yielding 7.6% in the market. What is the current price of the bond? A) $1,027.08 B) $1,131.19 C) $1,028.48 D) $972.00
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Related questions
Q 37
A $1000 bond with a coupon rate of 7% matures in eight years. The bond is now selling for $950, what is the expected yield to maturity on the bond? A) 6.5% B) 7.9% C) 9.0% D) 8.3%
Q 38
A $1000 bond with a coupon rate of 10%, interest paid semiannually, matures in eight years and sells for $1120. What is the yield to maturity? A) 10.8% B) 11.0% C) 7.9% D) 7.6%
Q 39
When a bond's coupon rate is equal to the market rate of interest, the bond will sell for A) a discount. B) a premium. C) par. D) a variable rate.
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