Practice Quiz on Maturity - 1 The stated interest payment...

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1. The stated interest payment, in dollars, made on a bond each period is called the bond's: A) Coupon. B) Face value. C) Maturity. D) Yield to maturity. E) Coupon rate. Answer: A 2. The principal amount of a bond that is repaid at the end of the loan term is called the bond's: 3. The rate of return required by investors in the market for owning a bond is called the:
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Unformatted text preview: A) Coupon. B) Face value. C) Maturity. D) Yield to maturity. E) Coupon rate. Answer: D 4. The annual coupon of a bond divided by its face value is called the bond's: A) Coupon. B) Face value. C) Maturity. D) Yield to maturity. E) Coupon rate. Answer: E 5. A bond with a face value of $1,000 that sells for less than $1,000 in the market is called a: A) Par bond. B) Discount bond. C) Premium bond. D) Zero coupon bond. E) Floating rate bond. Answer: B...
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