Question
Which of the following is NOT CORRECT about value of a
bond? i. If the bond is at discount, the price will decline over time towards its par value ii. If a bond is at par, its price will remain the same till the maturity iii. A zero coupon bond has only one cash flowSolution
If the bond is at premium, the price will decline over time towards its par value and if the bond is at discount, the price will increase over time towards its par value Zero coupon bonds have no coupon payments therefore the only cash flow is the payment at maturity of the bond.
More Finance Questions
- Identify x such that x% of 540 plus {1080 ÷ x of 9} × 6 gives 162
- Determine the value of ‘p’ if p = √529 + √1444
2/5 of 3/4 of 7/9 of 14400 = ?
(32.1)² + (46.8)² - (28.8)² =? + 2257.97
(36/8)2 × (912/38) ÷ (122/1586) = ?
...What value should come in the place of (?) in the following questions.
336 ÷ 6 ÷ √16 * ? = 1400 ÷ 4
If 1.123 × 3.211 = 3.122 + ______________, then the number in blank space is
3.3 Times 2/27 of 40% of 364=?
√529 + √64 + 92 = ?
(3/7) of 700 + 33(1/3)% of 339 - 69 =?
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