Quiz Ch 06 – Alternative Term for a Bond’s Par Value
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is another term used to refer to a bond’s par value?
What is another term used to refer to a bond’s par value?
What is the relationship between the yield to maturity, current yield, and coupon rate of a discount bond?
What exhibits the highest sensitivity to changes in market interest rates?
Why do many investors find municipal bonds appealing?
As the time to maturity decreases for a discount bond, what typically occurs?
What typically happens to a bond when market interest rates surpass the bond’s coupon rate?
What are the selling and buying prices for a bond dealer in bond trading?
What are the strategies employed by bond dealers to secure profits in the process of trading bonds?
What happens to the bond’s return during that period when a bond investor’s yield remains constant for a specific period?
If an investor’s primary concern is to protect and enhance their purchasing power through bond ownership, which type of bond should they choose?