I need help answering these. thanks in advance. 1. A bond with a...
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I need help answering these. thanks in advance. 1. A bond with a face value of $1,000 and a market quote in the financial press of 103.5 is called a a. premium bond and the ytm>coupon rate b. discount bond and the ytm>coupon rate c. premium bond and the ytm d. discount bond and the ytm e. not enough info provided to determine 2. The(pretax) cost of debt for a firm a. is always greater than the costs of equity b. is greater than the average coupon rate on the firms outstanding bonds c. is equal to the yield to maturity on the firm's outstanding bonds d. normally cannot be observed, directly or indirectly, in the marketplace e. is equal to the average coupon rate on the firm's outstanding bonds 3. all else equal, which of the following characteristics would lead to a lower yield for a bond: a. having a lower coupon rate b. having a higher credit rating c. having a longer time to maturity d. being junior status over senior status c. being callable
1. A bond with a face value of $1,000 and a market quote in the financial press of 103.5 is called a
a. premium bond and the ytm>coupon rate
b. discount bond and the ytm>coupon rate
c. premium bond and the ytm
d. discount bond and the ytm
e. not enough info provided to determine
2. The(pretax) cost of debt for a firm
a. is always greater than the costs of equity
b. is greater than the average coupon rate on the firms outstanding bonds
c. is equal to the yield to maturity on the firm's outstanding bonds
d. normally cannot be observed, directly or indirectly, in the marketplace
e. is equal to the average coupon rate on the firm's outstanding bonds
3. all else equal, which of the following characteristics would lead to a lower yield for a bond:
a. having a lower coupon rate
b. having a higher credit rating
c. having a longer time to maturity
d. being junior status over senior status
c. being callable
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