Evaluate the following statement:The Yield-to-Maturity (YTM) of a par bond is higher than that of a discount bond.

Bond investors prefer short maturities. This is based on: a.default risk b.liquidity risk c.maturity preference d.expectations theory

A bond's real rate of return is reflected by the bond's 1). YTM  2). Coupon Rate 3). Par Value  4). Selling Price  5). Redemption Value

The principal amount of a bond that is repaid at the end of the maturity is called:     Coupon     Market price     Face value

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

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.

a) All things being equal If a bond's coupon rate is higher than its yieldto maturity (YTM), is the bond selling at a discount, premium or par?b) All things being equal If a bond's coupon rate is lower than its yield tomaturity (YTM), is the bond selling at a discount, premium or par?c) All things being equal If a bond's coupon rate is equal to its yield tomaturity (YTM), then is the bond selling at a discount, premium or par?d) All else being equal, the longer the term to maturity, the greater orthe lower the duration?f) All else being equal, the higher the coupon rate on the bond, theshorter or the longer the duration of the bond?