Which of the following statements is CORRECT?
A. If rates fall after its issue, a zero coupon bond could trade at a price above its par value.
B. If rates fall rapidly, a zero coupon bond's expected appreciation could become negative.
C. If a firm moves from a position of strength toward financial distress, its bonds' yield to maturity would probably decline.
D. If a bond is selling at a premium, this implies that its yield to maturity exceeds its coupon rate.
E. If a coupon bond is selling at par, its current yield equals its yield to maturity.
Answer: E
You might also like to view...
The business decisions made by the finance department include promotion data, sales data, and advertising data.
Answer the following statement true (T) or false (F)
Indicate the group of words in which the number or numbers are correctly expressed. Which is correct?
A) on the 15th of the month B) on the fifteenth of the month
The following are the current month's balances for Global Enterprises
Accounts Payable $6,000 Revenue 11,000 Cash 5,000 Expenses 1,300 Furniture 10,000 Accounts Receivable 16,000 Common Stock 9,250 Notes Payable 4,000 What is the total amount of debits for the trial balance? A) $26,000 B) $27,300 C) $31,000 D) $32,300
The amount of a product an organization expects to sell during a certain period of time, based on a specified level of marketing effort, is called a
A. marketing information system. B. marketing mix. C. sales forecast. D. product mix. E. market share.