A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays interest annually and matures in three years. If the required rate of return on the bond is 5%, the price of the bond per 100 of par value is closest to A、98.65
A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays interest annually and matures in three years. If the required rate of return on the bond is 5%, the price of the bond per 100 of par value is closes..
A.98.65 B.101.36 C.106 查看答案
A.the holding period is longer than the maturity of the bond.B.the maturity of the bond is longer than the holding period.C.the holding period and the maturity of the bond are identical.D.none of the above.相关知识点: 试题来源: 解析...
C) If investors hold the efficient portfolio, then the cost of capital for any investment project is equal to its required return calculated using its beta with the efficient portfolio. D) The CAPM identifies the market portfolio as the efficient portfolio. Answer: B Diff: 1 Section: The...
d 4. The rate of return required by investors in the market for owning a bond is called the: a. coupon. b. face value. c. maturity。 d。 yield to maturity. e. coupon rate。 EFFECTIVE ANNUAL RATE c 5. The interest rate expressed as if it were compounded once per year is called ...
19) The global financial crisis lead to a decline in stock prices because19) ___ A) of a lowered expected dividend growth rate. B) higher expected future stock prices. C) of a lowered required return on investment in equity. D) higher current dividends. 20) If an individual moves money...
The bond trades at $950, it has a par value of $1,000, a coupon rate of 11%, and a required rate of return of 12%. (a)8 years (b)12 years (c)15 years (d)16 years Answer: (a) 42.Compute the current price of Walsingham bonds based on the following information. Walsingham ...
To calculate the annual rate of return on a bond, divide the bond's interest earned and price appreciation by the bond's value at the beginning of the year.
s a key input in pricing models. The risk-free rate also plays a part in cost-of-capital calculations. It helps companies assess the required return on investment projects and determine their optimal capital structure based on what that company could earn should it choose to not take on any...