A bond has a face value of $10,000, a price of $12,000, and coupon payments of $2000 for two years. The current yield of this bond is
A) 10%.
B) 16.7%.
C) 20%.
D) 30%.
E) none of the above
B
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Profit is defined as
a. net revenue minus depreciation. b. total revenue minus total cost. c. average revenue minus average total cost. d. marginal revenue minus marginal cost.
What is the relationship of bondholders to a company?
a. Bondholders owe the company a debt. b. The company owes bondholders a debt. c. Bondholders own part of the company. d. The company earns interest from the bondholders.
When resources are NOT allocated efficiently, we have ________________.
A. Answered the basic economic questions B. A market failure C. A government failure D. Market equity
Voluntary exchange
A. is usually beneficial to one party, but not the other. B. is always beneficial to both parties. C. is occasionally beneficial to both parties. D. occurs only between nations, not between individuals.