Quiz Ch 06 – Characteristics of Zero-Coupon Bonds
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which characteristic is typically NOT linked with a zero-coupon bond?
Which characteristic is typically NOT linked with a zero-coupon bond?
What factors are considered when calculating a bond’s yield to maturity?
Which element of a bond’s value is affected when interest rates undergo changes?
What does a “convertible bond” offer the option to convert into?
What is the coupon rate of a bond equal to?
What should investors anticipate when buying bonds with lower credit ratings?
What could be a potential reason for the increase in the market price of a bond with a 12-year maturity and an 8% annual coupon rate that occurred yesterday?
What factors contribute to bonds being sold at a premium?
What is the primary objective of issuing a floating-rate bond?
What is the likely outcome in the future if the bond is presently trading at par value, and the yield on the bond falls below the coupon rate?