1. The ____ is the annual coupon payment divided by the current price of the bon

ID: 2708759 • Letter: 1

Question

1. The ____ is the annual coupon payment divided by the current price of the bond, is not always an accurate indicator.

A)current yield

B)coupon rate

C)yield to maturity

D) bond discount rate

2)Moody's has developed a corporate bond default - risk rating system using capital and lower case letters and numbers. Below are several examples of moody's rating. which answer choice lists a collection of ratings for "high credit investment grade" bonds?

A)Bal, Baa2, Baa3

B)Baa1, A1, A3

C)Caa, Ca, C

D) Aa2, Aa3, A1

3)__are always unsecured bonds

A)callable bonds

B)junior debt bonds

C)debentures

D)Mortgage bonds

4)which of the following are issued with the shortest time to maturity?

A)treasury bills

B)treasury notes

C)treasury bonds

d) treasury stocks

5)the U.S. treasury bill is currently selling at a discount basis of 4.25%. the par value of the bill is $100,000, and will mature in ninety days. what is the price of this treasury bill?

A)$98,937.50

B)$95,750.00

C)$98,952.05

D)99,952.78

Explanation / Answer

The ____ is the annual coupon payment divided by the current price of the bond, is not always an accurate indicator.

A)current yield---answer