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chapter6 - Answer"true" if you are very excited to...

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Question 1 1 out of 1 points Which of the following is NOT mentioned in the course packet as one of the reasons you should care about bonds? Selected Answer: In the U.S., the market capitalization of bonds is almost as big as the market capitalization of stocks. Correct Answer: In the U.S., the market capitalization of bonds is almost as big as the market capitalization of stocks. Question 2 1 out of 1 points Bonds are classified as fixed-income securities. Selected Answer: Correct Answer: Question 3 1 out of 1 points A $1,000 par value bond with a 7% coupon rate will pay __________ in interest annually. Selected Answer: Correct Answer: Question 4 1 out of 1 points The value of an asset = the future value of the stream of expected cash
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flows compounded at the required rate of return. Selected Answer: Correct Answer: Question 5 1 out of 1 points Answer "true" if
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Unformatted text preview: Answer "true" if you are very excited to learn in class how to use your financial calculator to value bonds. (Hint: Don't answer false.) Selected Answer: Correct Answer: Question 6 1 out of 1 points If you are given the market price of a bond and are told to find the discount rate, this means you are looking for the __________. Selected Answer: Correct Answer: Question 7 1 out of 1 points The yield to maturity is the same as the current yield. Selected Answer: Correct Answer: Question 8 1 out of 1 points Zero coupon bonds __________. Selected Answer: Correct Answer: Question 9 1 out of 1 points A bond rated AAA is more risky than a bond rated BBB. Selected Answer: Correct Answer: Question 10 1 out of 1 points If market interest rates increase, the price of existing bonds will also increase. Selected Answer: Correct Answer:...
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