1 if a 6 annual coupon bond which matures in 12 years is, Ask an Expert

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1. If a 6% annual coupon bond which matures in 12 years is currently selling for $1,210.59, what is the bond s yield to maturity?

7.17%

3.61%

None of these

7.06%

3.78%

2. For a standard semi-annual coupon bond, when interest rates increase, which of the following is NOT true:

The price of the bond falls.

None of these.

The coupon amount increases.

The present value of the bond s remaining cash flows declines.

The bond is called a discount bond.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92725445

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