All else equal, the expected return will be lowest for which of the following bonds? Selected Answer: A CC rated bond. Answers: An A rated bond. A CC rated bond. bonds are fixed income Securities; they all earn the same return. A AAA rated bond.
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- Which of the following is TRUE about a bond's face (par) value? Select one: a. the face value of a bond is the same as the bond's price b. the par value of a bond is the interest payment c. the face value of a bond changes when yields change d. the value of a bond will always be equal to par at maturity.what is the price of the Pybus bonds if they receive an A rating will be $ ?Bond A is a par bond and Bond B is a premium bond. All else equal, which bond has the lower coupon rate? Select one: a. B b. A=B c. A
- A strip bond is Select one: O a. a financial tool that has an unknown payout b. a long term version of the treasury bill O c. a high end savings bond O d. a low yield bondIf a bond is attractive, it will experience a _____ amount of demand and ultimately sell for a _____. High; premium High; discount Low; premium Low; discountA triple B bond (BBB) according to DBRS is rated as which of the following? A. Investment grade (adequate credit quality) B. The highest quality on average C. Junk bond grade (very highly speculative) D. Default status grade
- Please help me answer this question - there are two parts: What will be the price of these bonds if they receive either an A or a AA rating? See image for details.Junk bonds are also called high-yield bonds. Select one: a. False b. TrueWhich one of the following statements is true regarding bond valuation?a. When yield to maturity is higher than coupon rate, the bond is called a premium bondb. When yield to maturity is higher than coupon rate, the bond is traded at parc. When yield to maturity is less than coupon rate, the bond is called a discount bondd. When yield to maturity is higher than coupon rate, the bond is called a discount bonde. When yield to maturity is equal to coupon rate, the bond is called a premium bond
- While comparing two bonds with the same face value, the price is all you need to determine which one has a better return on investment. True or false?1.If the coupon rate is less than the market rate, the bond will be a: Group of answer choices A. premium bond B. discount bond C. at par bond 2.If the coupon rate is greater than the market rate, the bond will be a: A. premium bond B. discount bond C. at par bond 3. If the price of the bond is greater than the par value, then the bond is a: A. premium bond B. discount bond C. at par bond 4.Company X is issuing bonds. They plan to issue 10,000, $1000 par, 7% bonds that pay semi-annual for 5 years. If the price per bond is $1020, what is the market annual rate-of-return? (percentage, 2 decimals, e.g. xx.xx)Which of the following statements is CORRECT? a. A bond is likely to be called if it sells at a discount below par. b. A bond is likely to be called if it sells at a premium above par c. A bond is likely to be called if its market price is equal to its par value. d. A bond is likely to be called if its market price is below its par value.