38 Pages

# Chapter 14 Bond Prices and Yields

Course Number: MGMT 223, Spring 2011

College/University: HKU

Word Count: 7874

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Chapter 14 Bond Prices and Yields Multiple Choice Questions 1. The current yield on a bond is equal to ________. A) annual interest divided by the current market price B) the yield to maturity C) annual interest divided by the par value D) the internal rate of return E) none of the above Answer: A Difficulty: Easy Rationale: A is current yield and is quoted as such in the financial press. 2. If a 7% coupon bond is...

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