Stephanie purchased a corporate bond that matures in three years. The bond has a coupon interest rate of 9 percent and its yield to maturity is 6 percent. If market interest rates remain constant and Stephanie sells the bond in 12 months, her capital gain from holding the bond will be:
A. positive because she purchased the bond at a discount and the bond price will approach its face value as it nears its maturity.
B. negative because she purchased the bond at a discount and the bond price will approach its face value as it nears its maturity.
C. positive because she purchased the bond at a premium and the bond price will approach its market price as it nears its maturity.
D. negative because she purchased the bond at a premium and the bond price will approach its face value as it nears its maturity.
E. positive because she purchased the bond at a discount and the bond price will approach its market price as it nears its maturity.
Answer: D
You might also like to view...
Our central core or essence, a profound sense of who we are is?
a. Purpose b. Goals c. Observation d. Self-leadership
Charlie's Hotdog Stand Charlie's Hotdog Stand sells hotdogs for $2.50 each. The variable costs per hotdog are $.50. Charlie's fixed costs are currently $800 per month. Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by $1,200. Refer to the Charlie's Hotdog Stand information above. If Charlie does expand his business to three stands,
how many hotdogs will need to be sold per month in order to earn a target profit of $5,000? A) 2,500 hotdogs B) 3,100 hotdogs C) 3,500 hotdogs D) 2,800 hotdogs
Strategic fit requires alignment of product design with?
a. External fit b. Internal fit c. Both external and internal fit d. Neither external nor internal fit
To reply efficiently to e-mail messages, you should practice ____________________, which involves inserting your responses to parts of the incoming message
Fill in the blank(s) with correct word