subject
Business, 14.02.2020 00:29 babyskitt

Three $1,000 face value, 10-year, noncallable, bonds have the same amount of risk, hence their YTMs are equal. Bond 8 has an 8% annual coupon, Bond 10 has a 10% annual coupon, and Bond 12 has a 12% annual coupon. Bond 10 sells at par. Assuming that interest rates remain constant for the next 10 years, which of the following statements is CORRECT? a. Since the bonds have the same YTM, they should all have the same price, and since interest rates are not expected to change, their prices should all remain at their current levels until maturity b. Bond 8 sells at a discount (its price is less than par), and its price is expected to increase over the next year. c. Over the next year, Bond 8's price is expected to decrease, Bond 10's price is expected to stay the same, and Bond 12's price is expected to increase. d. Bond 12 sells at a premium (its price is greater than par), and its price is expected to increase over the next year. e. Bond 8's current yield will increase each year.

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 21:30, tilacohen
1. gar principles or "the principles"are intended to do what?
Answers: 2
image
Business, 22.06.2019 03:10, hipstergirl225
Beswick company your team is allocated a project involving a major client, the beswick company. although the organization has many clients, this client, and project, is the largest source of revenue and affects the work of several other teams in the organization. the project requires continuous involvement with the client, so any problems with the client are immediately felt by others in the organization. jamie, a member of your team, is the only person in the company with whom this client is willing to deal. it can be said that jamie has:
Answers: 2
image
Business, 22.06.2019 12:00, bbyniah123
Select the correct answer. martha is a healer, a healthcare provider, and an experienced nurse. she wants to share her daily experiences, as well as her 12 years of work knowledge, with people who may be interested in health and healing. which mode of internet communication can martha use? a. wiki b. email c. message board d. chat e. blog
Answers: 2
image
Business, 22.06.2019 21:50, preguntassimples
Assume that (i) setups need to be completed first; (ii) a setup can only start once the batch has arrived at the resource, and (iii) all flow units of a batch need to be processed at a resource before any of the units of the batch can be moved to the next resource. process step 1 molding 2 painting 3 dressing setup time 15 min. 30 min. no setup processing time 0.25 min./unit 0.15 min./unit 0.30 min./unit which batch size would minimize inventory without decreasing the process capacity?
Answers: 1
You know the right answer?
Three $1,000 face value, 10-year, noncallable, bonds have the same amount of risk, hence their YTMs...

Questions in other subjects:

Konu
Mathematics, 03.02.2021 14:00
Konu
Mathematics, 03.02.2021 14:00