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- A bond is currently selling for $980. This is a _____ bond which will ultimately experience a capital _____. Premium; gain Premium; loss Discount; gain Discount; lossA bond with a face amount of $12,000 has a current price quote of 107.15. What is thebond’s price?a. $12,107.15b. $1,285.80c. $12,858.00d. $128,580Assume a face value of a bond JD 1000, when the bond reaches maturity, if it is selling at:a. JD 900, bond value goes down to JD 850b. JD 1000, bond value goes down to JD 900c. JD 1100, bond value goes up to JD 1200 d. JD 1050, bond value goes down to JD 1000
- If a P1,000 bond sells for P1,125, which of the following statements are correct? I. The market rate of interest is greater than the coupon rate on the bond. II. The coupon rate on the bond is greater than the market rate of interest. III. The coupon rate and the market rate are equal. IV. The bond sells at a premium. V. The bond sells at a discount. a. I and IV b. I and V c. II and IV d. II and VA bond is quoted 101.3513 "ask," and 97.3852 "bid." What is the bid-ask spread in this bond if the bond's face value is $1,000? O $13.43 O $45.26 O $33.97 O $39.66Can you review the calculation for part 2 please Price of bond= 100 x 1-1.13-20.13+11201.132=$1043.93 and Price of bond=100 x 1-1.14-20.14+11201.142=$1026.47
- 3. Aboitiz Equity Ventures issued a 7-year bond with a par value of P50,000 that pays a coupon of 8.47%. Coupon payments will be made annually. Investors required rate of return is composed of: real risk free rate of 1.5%; inflation premium of 4.5%; default risk premium of 2%; liquidity premium of 1.5%; and maturity risk premium of 2%. The required rate of return would be? а. 6% b. 8% c. 9.5% d. 11.5%Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return Market Rate of Return. Bond 1. O Bond 2. Bond 4. O Bonds 1 and 2. Bond 1 5% 7% Bond 2 7% 8% Bond 3 12% 12% Bond 4 10% 9%What is assumed the be the face value aka par value aka principal aka loan amount of a bond? It's also assumed to be a bond's FV. 10% $0 $100 $1,000
- Bond A is a municipal bond and Bond B is a corporate bond. Which bond should have the lower yield to maturity? Select one: a. B b. A c. A=BBonds with a face value of $504000 and a quoted price of 104.25 have a selling price of $525420. $524160. $524286. $506142.Suppose a sixy ear bond is purchased for $4800. The face value of the bond when it matures is $7032. Find the APR.