A $1,000 face value bond purchased for $965.00, with an annual coupon of $60, and 20 years to maturity has a:
A. a yield to maturity and current yield equal to 6.00%.
B. a current yield equal to 6.00%.
C. a coupon rate equal to 6.22%.
D. a current yield equal to 6.22%.
Answer: D
You might also like to view...
Assuming that resources are specialized, the opportunity cost of an item increases as the production of it rises. This implies that firms will produce more as
A. the price increases. B. the price decreases. C. the opportunity cost is greater than the price. D. government asks firms to produce more. E. the income of buyers increases.
If a nation follows a policy of being self-sufficient, its:
a. production possibilities equal its consumption possibilities. b. consumption possibilities are greater than its production possibilities. c. production possibilities curve shifts rightward. d. consumption possibilities are less than its production possibilities.
If Suntrust Banks have demand deposits of $10 billion, actual reserves of $2 billion, and the reserve requirement is 18%, the bank's excess reserves are
A. $180 million. B. $200 million. C. $360 million. D. $400 million.
An investor puts $2,000 into an investment that will pay $2,500 one-fourth of the time; $2,000 one-half of the time, and $1,750 the rest of the time. What is the investor's expected return?
A. 12.5% B. 3.125% C. $250.00 D. 6.25%