Sản phẩm & Rủi roCâu 39 / 398
If a bond's current yield is 5% and its coupon rate is 5%, the bond is most likely trading at:
a.A discount
b.A premium
c.Par value
d.An unknown price
Giải thích
Current yield equals the coupon rate only when the market price equals par, because current yield is coupon divided by price. If current yield were higher it would be a discount, and if lower it would be a premium.
Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- A bond has a 6% coupon and is currently priced at $1,200 (a premium). Its current yield is:
- For a bond purchased at a discount, which of the following relationships is correct?
- Yield to maturity (YTM) is best described as the total return an investor earns if the bond is:
- Two bonds are identical except for maturity. Which bond's price will generally change MORE for a given change in interest rates?
- An investor buys a bond at par with a 4% coupon. If market rates later drop to 2%, the market value of the investor's bond will most likely:
- Nominal yield on a bond refers to:
Cập nhật gần nhất: · quy trình kiểm tra
Đội Ngũ Biên Tập PrepPass · Đối chiếu với FINRA Securities Industry Essentials (SIE) Exam · Quy trình kiểm tra