FINHW#4 - Periodic receipts of interest by the bondholder...

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Periodic receipts of interest by the bondholder are known as: the coupon rate. a zero-coupon. coupon payments. the default premium
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How much should you pay for a $1,000 face value bond with 10% coupon, annual payments, and five years to maturity if the interest rate (or bond yield or yield to maturity) is 12%? Feedback:  $ 927.90 $ 981.40 $1,000.00 $1,075.82 What is the "Current Yield" as opposed to the bond's yield to maturity of a bond with a 6% coupon, four years until maturity, and a price of $750? Feedback: pp.118-119  , 60/750=8% The discount rate that makes the present value of a bond's payments equal to its price is termed the: What is the yield to maturity for a bond paying $100 annually that has six years until maturity and sells for $1,000? Assume par = $1,000. . N=6, PMT=100, FV=1000, PV=-1000, CPT I/Y=10
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How much should you pay for a $1,000 face value bond with 10% coupon, annual payments, and five years to maturity if the interest rate (or bond yield or yield to maturity) is 12%? Feedback: 
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This note was uploaded on 05/02/2011 for the course FIN 3400 taught by Professor Ll during the Spring '09 term at CSU East Bay.

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FINHW#4 - Periodic receipts of interest by the bondholder...

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