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Author Question: The value of a bond is the present value of both the future interest to be received and the price of ... (Read 93 times)

Lisaclaire

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on: Jul 10, 2018
The value of a bond is the present value of both the future interest to be received and the price of
  the bond.
 
  Indicate whether the statement is true or false

Question 2

Fred and Ethel are both considering buying a corporate bond with a coupon rate of 8, a face value
  of 1,000, and a maturity date of January 1, 2025. Which of the following statements is MOST
  correct?
 
  A) Fred may determine a different value for a bond than Ethel because each investor may have a
  different level of risk aversion, and hence a different required return.
  B) Because both Fred and Ethel will receive the same cash flows if they each buy a bond, they
  both must assign the same value to the bond.
  C) Fred and Ethel will only buy the bonds if the bonds are rated BBB or above.
  D) If Fred decides to buy the bond, then Ethel will also decide to buy the bond, if markets are
  efficient.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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Rilsmarie951

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Lisaclaire

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Reply #2 on: Jul 10, 2018
TY


Rilsmarie951

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Reply #3 on: Jul 10, 2018
Happy to Help


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