Ask Question
BusinessBusiness
22 August, 05:47

A fixed coupon bond with par value of $1,000 has a coupon of 6%, semiannually payable. The current annual nominal market interest rate (i. e., yield to maturity) for this bond is 8%. Therefore the bond is selling ... and the bond's current yield is ...

+3
Answers (1)
  1. 22 August, 05:58
    0
    at a discount; greater than 6%

    Explanation:

    A fixed coupon bond is a long-term debt paper that has a predetermined and fixed interest rate. This is known as coupon rate. In this example, the bond's yield to maturity is higher than the coupon rate. Therefore, this is selling at a discount. Moreover, because the bond is selling at discount, current yield would be more than coupon rate (6%).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A fixed coupon bond with par value of $1,000 has a coupon of 6%, semiannually payable. The current annual nominal market interest rate (i. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The character of a company's corporate culture is a product of:A. the shared values and core business principles and beliefs that management preaches and practices. B.
Answers (1)
For an investment in a stock, the probability of the return being - 10.0% is 0.3, 10.0% is 0.4, and 30.0% is 0.3. given the probability distributions, what is the expected rate of return for the investment
Answers (1)
The principle of monetary neutrality implies that an increase in the money supply will a. increase real GDP and the price level. b. increase the price level, but not real GDP. c. increase real GDP, but not the price level. d.
Answers (1)
Describe what an insurance company does and sells without using the word insurance
Answers (1)
ineffective communication is the faulty of the sender. discuss
Answers (1)
New Questions in Business
The last stage of the new-product development process is
Answers (1)
Divided Fantastic Frames sells its frames for $15 per unit. Variable costs total $6 per unit, and fixed costs total $90,000. If Fantastic Frames increases sales by
Answers (1)
A trade show is usually focused on what? a. an employer b. an industry c. a school d. a craft
Answers (1)
The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars' worth of sales are generated from every $1 in total assets
Answers (1)
Select all maintenance procedures that may be performed in an office. update software replace printer cartridges clean copy machines install virus-protection software print copies to be distributed at a meeting
Answers (1)
Home » Business » A fixed coupon bond with par value of $1,000 has a coupon of 6%, semiannually payable. The current annual nominal market interest rate (i. e., yield to maturity) for this bond is 8%. Therefore the bond is selling ... and the bond's current yield is .
Sign Up Forgot Password?