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Author Question: A bond has a $1,000 par value, makes annual interest payments of $200, has 7 years to maturity, ... (Read 160 times)

nanna

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Question 1

A 28-year corporate bond was issued 20 years ago. What is it today?

a long-term bond with 8 years to maturity


a long-term bond with 28 years to maturity


a medium-term bond with 8 years to maturity


a medium-term bond with 28 years to maturity



Question 2

A bond has a $1,000 par value, makes annual interest payments of $200, has 7 years to maturity, cannot be called, and is not expected to default. What should we generally expect of the price of this bond if interest rates change?

If interest rates on similar bonds rise, the price of this bond may remain unchanged.


If interest rates on similar bonds decline, the price of this bond should also decline.


If interest rates on similar bonds decline, the price of this bond should rise.


If interest rates on similar bonds rise, the price of this bond should also rise.



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Marked as best answer by nanna on Aug 7, 2023

zubair1583

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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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nanna

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


jordangronback

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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