If interest rates decline after a bond is issued,
A. the bond's coupon is decreased.
B. the bond's price falls.
C. the yield to maturity will exceed the current yield.
D. the current yield will exceed the yield to maturity.
Answer: D
You might also like to view...
The advantages-disadvantages pattern of organization begins by discussing both sides objectively
Indicate whether this statement is true or false.
In Activity Based Costing, what is the term used to refer to the work performed by a firm?
Some cellular providers are signing deals with business partners wanting to market products based on specific phone users' locations and calling habits. These cellular providers are participating in a new trend called ________
A) telemarketing B) data warehousing C) reality mining D) virtual mining E) prediction marketing
On March 1 . 2014, Hardy Corp became the lessee of new equipment under a noncancelable six-year lease. The total estimated economic life of this equipment is ten years. The fair value of this equipment on March 1 . 2014, was $100,000 . The lease does not meet the criteria for classification as a capital lease with respect to transfer of ownership of the leased asset, or bargain purchase option,
or lease term. Nevertheless, Hardy must classify this lease as a capital lease if, at inception of the lease, the present value of the minimum lease payments (excluding executory costs) is equal to at least a. $67,500. b. $75,000. c. $90,000. d. $100,000.