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The principal amount of a bond that is repaid at the end of the maturity is called:
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- 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 maturityThe 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.he yield that a bond will earn given that it is bought back by the issuer at the earliest possible date is the: Select one: a. current yield b. yield to maturity c. yield to put d. market yield e. yield to call
- The yield to maturity on bonds is usually the same as a. yield to call. b. current yield. c. the market rate of interest. d. the coupon rate of interest.The method used to value a default-free zero coupon bonds (such as T-bills) requires that the interest is deducted from the face value of the bonds in advance. a.rediscounting b.market price c.forward price d.discount interestDiscuss the following statement: A bond’s yield to maturity is the bond’s promised rate ofreturn, which equals its expected rate of return.
- Duration is a measure of __________________. A) yield to maturity of a bond. B) coupon rate of a bond C) price of a bond D) effective maturity of a bondPlease see attached. Definition: Yield to maturity (YTM) is the return the bond holder receives on the bond if held to maturity.Define each of the following terms:g. Current yield (on a bond); yield to maturity (YTM); yield to call (YTC)
- Please see attached. Definitions: Yield to maturity (YTM) is the return the bond holder receives on the bond if held to maturity.discuss the relationship between the percentage of a bonds price due to its coupon payments and the time to maturity.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.