Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- All else the same, a will decrease the required return on a bond. Select one: O a. sinking fund O b. increase in the size of a bond issuance O c. lower bond rating O d. call provision O e. increase in inflationarrow_forwarde) Why do we say a coupon bond can beseen as a package of zero-coupon bonds?Please use anumerical example forillustration.arrow_forwardWhich of the following statements is TRUE regarding bonds? O A. At maturity, lenders repay a bond's par value to borrowers. O B. Ceteris paribus, bonds with higher YTMS would have higher prices. c. Borrowers purchase bonds. O D. If you anticipate a decline in market interest rates, you should purchase long-term zero-coupon bonds.arrow_forward
- Can I use the yield to maturity (YTM) on a bond issued by the company as the cost of debt? A Yes, you can use the YTM B No, you cannot use the YTM C Only if the bond is liquid and has not special feature embedded in it D There is not enough information to answer this problemarrow_forwardA premium bond is a bond that sells for less than its par value. O True Falsearrow_forwardAll 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.arrow_forward
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