1. A semiannual coupon bond with face value of $1000 has a coupon rate of...
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Accounting
1. A semiannual coupon bond with face value of $1000 has a coupon rate of 8% and matures in 15 years. The market-determined discount rate on this bond is 15%. What is the price of the bond? Round to the penny.
2. A semiannual coupon bond with a coupon rate of 5% and the face value of $1000 trades at $1050. It matures in 7 years. What is its yield to maturity (YTM)? Answer in percent and round to two decimal places.
3. A 5-year semiannual coupon bond with a face value of $1000 trades at $864. The market-determined discount rate is 4%. What is the coupon rate? Answer in percent and round to two decimal places
4.
Which of the following is true of shorter maturity bonds?
| There is no relationship between maturity and yield. |
| They generally have higher yields than bonds with longer maturities. |
| They tend to have negative yields. |
| They generally have lower yields than bonds with longer maturities. |
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