If you were to purchase a 12% bond when the market interest rate for such bonds was 11%, would you expect to pay more or less than the face amount for the bond?  If you were to purchase a 12% bond when the market interest rate for such bonds was 13%, would you expect to pay more or less than the face amount for the bond?  Explain your answers from above?

What is a warrant? If a company decides to raisecapital by issuing bonds with warrants, how wouldthe terms on both the bond and the warrant beset? Consider in particular how the coupon rateand maturity of the bond would be related to theexercise price and life of the warrant, together withany other factors that might affect the decision.

Which of the following statements is right? Group of answer choices a)Ignoring the liquidity risk, the 10-treasry bond should have the same interest rate as the 10-year corporate bond. b)Ignoring the default risk, the 10-treasry bond should have the same interest rate as the 10-year corporate bond. c)The return of the 10-year treasury bond must be less than that of the 10-year corporate bond d)The return of the 10-year treasury bond must be greater than that of the 10-year corporate bond

The carrying value of bonds at maturity always equals: Multiple Choice O The amount in excess of par value. the par value of the bond. the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. the amount of cash originally received in exchange for the bonds. the amount of discount or premium.

Which of the following is true about a bondholder?      At the beginning of the life of the bond, the firm will pay a price for a bond and will then receive coupon payments throughout the life of the bond and receive the return of the principal amount at maturity     At the beginning of the life of the bond, the firm will receive a price for a bond and will then pay coupon payments throughout the life of the bond and pay the return the principal amount at maturity     At the beginning of the life of the bond, the bondholder will pay a price for a bond and will then receive coupon payments throughout the life of the bond and receive the return of the principal amount at maturity     At the beginning of the life of the bond, the bondholder will receive a price for a bond and will then pay coupon payments throughout the life of the bond and pay the return the principal amount at maturity

For a standard corporate bond, when are the following characteristics of the bond determined? ······ The amount that the issuer returns to the bondholder, when the bond matures. The maturity date. The bond's market yield. The bond's market price. The price that the bondholder pays to the issuer to acquire the bond. The amounts of any interest payments. The bond's coupon rate. The dates of any interest payments. 1. 2. Fixed before the bonds are sold and does not change. Fixed when the bonds are sold and does not change. 3. Fluctuates continually.

How does one determine the required rate of return of a bond, the cash flows of a bond and the value of a bond?  How do you determine if a bond is a good investment? Are long-term bonds riskier than short-term bonds? Explain and Discuss.

39.  Help me selecting the right answer. Thank you

In theory (disregarding any other marketplace variables), the proceeds from the sale of a bond will be equal to The face amount of the bond plus the present value of the interest payments made during the life of the bond. The sum of the face amount of the bond and the periodic interest payments The face amount of the bond The present value of the bond maturity value plus the present value of the interest payments to be made during the life of the bond.

Under what situation might a bond discount arise when issuing bonds? Select one: a. The coupon rate is less than the effective or yield rate. b. The effective or yield rate is less than the coupon rate. c. The coupon rate is less than the cash rate of interest. d. The effective or yield rate is less than the market rate of interest.