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- Define each of the following terms:g. Current yield (on a bond); yield to maturity (YTM); yield to call (YTC)which of the below does not qualify a bond ? a. Time to maturity b. Par Value c. Coupon rate d. Yield to Maturity e. Current yieldThe dollar interest received divided by the market price of the bond is called the Group of answer choices A. current yield. B. yield to maturity. C. coupon rate. D. par value.
- The formula for the yield to maturity, i, on a discount bond is (Points : 1)i = (Face value – Discount price)/Discount price.i = (Discount price – Face value)/Discount price.i = (Face value – Discount price)/Face value.i = (Discount price – Face value)/Face valueTrue or False? Macaulay duration of measure of the curvature in the relationship between bond prices and bond yields.Identify/explain the relationship between coupon rate and yield to maturity for: Discount Bonds Premium Bonds Par Value Bonds
- The formula (Coupon Payment / Current bond price) calculates the _______. Multiple Choice Current yield. Risk-free rate. Coupon rate. Yield to maturity Bond premium.he interest rate used to calculate the present value of a bond's cash flows is often referred to as the:Group of answer choices dividend rate. discount rate. multiplier. yield to maturityIn the context of coupon-paying bonds, which of the following are most likely determined bymarket forces?I. The current yield.II. The yield to maturity.III. The coupon rate. A. I only.B. II only.C. I and II only.D. I and III only
- To calculate the price of a coupon bond, the following information is required: Select one: O A. Face value of the bond, yield to maturity rate, maturity date and inflation rate. O B. Face value of the bond, yield to maturity rate, maturity date, coupon rate and inflation. O C. Face value of the bond, inflation rate, coupon rate and coupon rate. O D. Face value of the bond, yield to maturity rate, maturity date and coupon rate.Define each of the following terms:c. Floating-rate bond; zero coupon bond; original issue discountbond (OID)2. Term structure premium, an inflation of bond and bond default premium are included in A. risk factors B. premium factors C. bond buying factors D. multi model