This topic contains a solution. Click here to go to the answer

Author Question: Which statement regarding bonds is true? (Read 37 times)

isam

  • Full Member
  • ***
  • Posts: 156
Which statement regarding bonds is true?

If a 20-year, $1,000 par, 9% coupon bond was issued at par, and if interest rates then dropped to the point where rd= YTM = 6%, we could be sure that the bond would sell at a discount below its $1,000 par value.


If a 20-year, $1,000 par, zero coupon bond was issued at a price that gave investors a 9% yield to maturity, and if interest rates then dropped to the point where rd = YTM = 6%, the bond would sell at a premium above its $1,000 par value.


Other things held constant, a callable bond would have a higher required rate of return than a noncallable bond.


People often call a downward-sloping yield curve a normal yield curve and a yield curve that slopes upward an inverted, or abnormal, yield curve.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by isam on Aug 7, 2023

jojo120419

  • Full Member
  • ***
  • Posts: 158
Reply #1 on: Aug 7, 2023
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.
Answer Preview
Only 39% of students answer this correctly




isam

  • Member
  • Posts: 156
Reply 2 on: Aug 7, 2023
:D TYSM


bulacsom

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

 

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

For a complete list of videos, visit our video library