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chap007 - Chapter 007 Interest Rates and Bond Valuation...

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Chapter 007 Interest Rates and Bond Valuation Multiple Choice Questions   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.   SECTION: 7.1 TOPIC: COUPON TYPE: DEFINITIONS   2. The principal amount of a bond that is repaid at the end of the term is called the:  a. coupon. B . face value. c. maturity. d. yield to maturity. e. coupon rate.   SECTION: 7.1 TOPIC: FACE VALUE TYPE: DEFINITIONS   3. The specified date on which the principal amount of a bond is repaid is called the:    SECTION: 7.1 TOPIC: MATURITY TYPE: DEFINITIONS 7-1

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Chapter 007 Interest Rates and Bond Valuation   4. The rate of return required by investors in the market for owning a bond is called the:    SECTION: 7.1 TOPIC: YIELD TO MATURITY TYPE: DEFINITIONS   5. The annual coupon divided by the face value of a bond is called the:    SECTION: 7.1 TOPIC: COUPON RATE TYPE: DEFINITIONS   6. The annual coupon payment divided by the market price of a bond is called the:  a. coupon rate. B . current yield. c. yield to maturity. d. bid-ask spread. e. capital gains yield.   SECTION: 7.1 TOPIC: CURRENT YIELD TYPE: DEFINITIONS 7-2
Chapter 007 Interest Rates and Bond Valuation   7. An indenture is:    SECTION: 7.2 TOPIC: INDENTURE TYPE: DEFINITIONS

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