Bonds(1)
In general, a corporate bond's coupon rate_____________
is fixed until the bond matures
Which of the following is true about a multi-year typical bonds coupon
its a fixed annuity payment
Which of the following are true about a bond's face value?
-It is also known as the par value -It is the principal amount repaid at maturity
which of the following institutions issue bonds that are traded in the bond market
-federal government -state governments -public corporations
how is a zero coupon bond different from a conventional bond
-zero coupon bonds are always issued at a discount -zero coupon bonds make no interest payments
As an investor in the bond market, why should you be concerned about changes in interest rates?
Changes in interest rates cause changes in bond prices
Which of the following terms apply to a bond?
Par value Coupon rate Time to maturity
what is the difference between the quoted yield and the effective yield
QY does not adjust for compounding while EY does
Variables for value of bonds
Remaining life of yield Coupon rate market yield