An analyst determines that an 8% option-free bond, maturing, in 2015, would experience a 3% change in price if market interest rise by 50 basis points. If market interest rates instead fall by 50 basis points, the bond's price would:()
A. increase by less than 3%.
B. increase by more than 3%.
C. decrease by less than 3%.
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What value would an investor place on a 20 - year, $1000 face value, 10 percent annual coupon bond, if the investor required a 9 percent rate of return()
A. $879.
B. $920.
C. $1091.
A 30-year, 12% bond that pays interest annually is discounted priced to yield 14%. However, interest payments will be invested at 12%. The realized compound yield on this bond must be:()
A. between 12.0% and 14.0%.
B. 12.0%.
C. 14.0%.
If a $1000 bond has a 14 percent coupon rate and a current market price of 950, what is the current market yield()
A. 14.74%.
B. 14.00%.
C. 15.36%.
Which is the bond-equivalent yield given if the monthly yield is equal to 0.7 percent()
A. 8.40%.
B. 8.58%.
C. 8.55%.