Suppose That You Are Reviewing a Price Sheet for Bonds

question 50

Multiple Choice

Suppose that you are reviewing a price sheet for bonds and see the following prices (per $100 face value) reported. Without calculating the price of each bond, which bond seems to be reported incorrectly? $$\begin{array} { | c | c | c | c | } \hline \text { Bond } & \text { Price } & \text { Coupon Rate } & \text { Yield } \\\hline \mathrm { V } & 100 & 6 \% & 6 \% \\\hline \mathrm { W } & 110 & 8 \% & 6 \% \\\hline \mathrm { X } & 95 & 0 \% & 5 \% \\\hline \mathrm { Y } & 107 & 7 \% & 9 \% \\\hline \mathrm { Z } & 90 & 6 \% & 9 \% \\\hline\end{array}$$

• A)Bond V
• B)Bond X
• C)Bond Z
• D)Bond Y
• E)Bond W

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Definitions:

Sleep Spindles

A type of rapid, rhythmic brain activity observed during stage 2 of NREM sleep that plays a role in learning and memory.

REM Sleep

Rapid Eye Movement sleep; a sleep phase associated with vivid dreams, characterized by rapid movement of the eyes.

REM Rebound

The phenomenon where there is an increase in REM sleep after being deprived of it.

REM Rebound

The phenomenon where there is an increase in REM (Rapid Eye Movement) sleep following a period of REM sleep deprivation.