A bond is selling at a premium relative to its par value.Which of the followingrelationships holds?[单选题] A. Yield to maturity > coupon rate > current yield. B. Current yield > yield to maturity > coupon yield. C. Coupon rate > current yield > yield to maturity. ...
A A bond selling at a premium has a higher coupon rate and, all else being equal, bonds with highercoupon rates face higher reinvestment risk. The reason is that the higher the coupon rate, the moredependent the bond's total dollar return will be on the reinvestment of the coupon payments...
When the issue price is greater than par, the bond is selling at a premium. We also know that the current market required rate is less than the coupon rate of 6.75%, because the bond is selling at a premium. For the examination, remember the following relationships: 反馈 收藏 ...
刷刷题APP(shuashuati.com)是专业的大学生刷题搜题拍题答疑工具,刷刷题提供A bond is selling at a premium relative to its par value. Which of the following relationships holds()A.Yield to maturity>coupon rate>current yield.B.Current yield>yield to matur
D. below the current yield minus capital gain when the bond sells at a discount, and above the current yield plus capital loss when the bond sells at a premium. 正确答案:B 分享到: 答案解析: When a bond is selling at a premium, the current yield will be larger than the YTM. Re...
B. premium bond.C. term bond. 正确答案:B 分享到: 答案解析: When the coupon rate on a bond is higher than the prevailing market rate the bond will be selling at a premium. This occurs because the bonds price will be higher than the face value because as interest rate goes down price...
If a bond is selling for a premium, this implies that the bond’s yield to maturity exceeds its coupon ratE( ) 点击查看答案 你可能感兴趣的试题 问答题 某气、液逆流的吸收塔,以清水吸收空气—A混合气中的A。总压为1大气压。已知塔底气相中含A 2.5%(摩尔分率),水中含A的浓度为2×10-5(摩尔...
When a bond trades for more than par, then it is selling at a premium, which will pay a lower yield than its stated coupon rate, and when it is selling for less, it is selling at a discount, paying a higher yield than its coupon rate. When interest rates rise, bond prices decline...
INVESTMENTS|BODIE,KANE,MA1R4C-U2S BondCharacteristics •Faceorparvalueistypically$1000;thisistheprincipalrepaidatmaturity.•Thecouponratedeterminestheinterestpayment.–Interestisusuallypaidsemiannually.–Thecouponratecanbezero.–Interestpaymentsarecalled“couponpayments”.INVESTMENTS|BODIE,KANE,MA1R4C-U3S U....
10、ce.For bonds selling at a premium, coupon rate current yieldYTM.For discount bonds, relationships are reversed.16Yield to CallIf interest rates fall, price of straight bond can rise considerably.The price of the callable bond is flat over a range of low interest rates because the risk ...