1 2 3 4 5 6 7 (8 (9 10 This Question: 5 pts This Test: 100 pts Time Remaining: 0

Question

1 2 3 4 5 6 7 (8 (9 10 This Question: 5 pts This Test: 100 pts Time Remaining: 00:57:49 0 of 20 complete A bond with an annual coupon of $100 originally sold at par for $1,000. The current yield to maturity on this bond is 9%. Assuming no change in risk, this bond would sell at a_ in order to compensate OA. discount; the issuer for the higher cost of borrowing OB. premium: the seller for the above market coupon rate OC. discount; the seller for the above market coupon rate OD, discount the purchaser for the above market coupon rate OE. premium; the purchaser for the above market coupon rate

Explanation / Answer

Question 1)

E is the correct option

Three important benefits of premium bonds are:

Question 2)

The security market line does not respond to investor expectation about poitical stability as security line has no relation to poitics.

Question 3)

Option A is the correct option.

Effecient mrket is not affected by small number of well known investor.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.