A Corporate Bond with a Face Value of $1,000 Is

question 17

Multiple Choice

A corporate bond with a face value of $1,000 is currently selling at par,and pays an 8% yield to maturity.Which of the following statements concerning this bond is true?

• A)Its current market price is $1,000.
• B)Its current semi-annual coupon payment is $40.
• C)Its current yield is 8%.
• D)All of the above are correct.
• E)Only B and C are correct.

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Definitions:

Disjunction

Disjunction is a logical operation that results in true if at least one of the operands is true; in propositional logic, it's represented by the OR operator.

Event

An occurrence or happening, especially one of significance, that can be observed or participated in.

Dependent

Relies on or is determined by another object, condition, or factor.

Independent Events

Two or more events where the occurrence of one does not affect the probability of the other(s).