a. Explain the difference between a bond’s coupon,and itsyield to maturity.b. Describe a zero-couponbond

What is the difference between the yield to maturity of a bond and the realized yield?

1. What are the two main components of a bond’s yield and what do they represent?

Explain the reasoning behind the bond-yield-plus-judgmental-riskpremium approach.

1. Can issue characteristics (such as coupon and call features) affect the yield and price behavior of bonds? Explain.

1. To calculate a gain or loss on redemption of a bond, you compare a. The market interest rate to the contract rate b. The carrying value value of the bond to the proceeds received from the sale of the bond c. The income for the period d. The proceeds to the unamortized premium or discount   2. If the proceeds are greater than the carrying value, you will have a a. gain with a credit balance b. gain with a debit balance c. loss with a debit balance d. loss with a credit balance

A bond’s expected return is sometimes estimated by its YTM and sometimes by its YTC. Underwhat conditions would the YTM provide a better estimate, and when would the YTC be better?

Define the following: Convertible Bond: Yield to Maturity: call feature

The theoretical floor value for a convertible bond is its A. pure bond value. B. onversion price. C. conversion value. D. par value.

The yield to maturity on a bond   a is fixed in the indenture. b is lower for higher-risk bonds. c is the required return on the bond. d is generally equal to the coupon interest rate.