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