Charlie Corporation has two bonds outstanding. Both bonds mature in 10 years, have a face value
of $1,000, and have a yield to maturity of 8%. One bond is a zero coupon bond and the other bond
has a coupon rate of 8%.
Which of the following statements is true?
A) Both bonds must sell for the same price if markets are in equilibrium.
B) The zero coupon bond must sell for a lower price than the bond with an 8% coupon rate.
C) All rational investors will prefer the 8% bond because it pays more interest.
D) The zero coupon bond must have a higher price because of its greater capital gain potential.
B
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What is the result in cell B4? Note that the function is using a 30/360 day count basis.
a) 0.5
b) 1.0
c) 1.5
d) 2
e) 3
On January 2, 20x5, McGowan Corporation issued 20-year bonds payable with a face value of $300,000 and a face interest rate of 8 percent. The bonds were issued to yield a market interest rate of 9 percent. Interest is payable annually on January 2. In calculating the present value of the bond issue of January 2, 20x5, the
A) 9 percent rate will be used to calculate the present value of the face amount and the 8 percent rate will be used to calculate the present value of the periodic interest payments. B) 9 percent rate will be used to calculate the present value of the face amount and the present value of the periodic interest payments. C) 8 percent rate will be used to calculate the present value of the face amount and the present value of the periodic interest payments. D) 8 percent rate will be used to calculate the present value of the face amount and the 9 percent rate will be used to calculate the present value of the periodic interest payments.
The balanced scorecard perspective that addresses concerns about organizational growth is the ____________________ perspective
Fill in the blank(s) with correct word
. eBay buyers voluntarily comment to other users and sellers on the quality of service, promptness of shipping, and their general satisfaction with the product. This is one of the most popular examples of user-generated content and is called ____________.
A. Reputation system B. Knowledge system C. Explicit system D. User-generated sales cycle