A $1,000 Par Value Bond Is Currently Valued at $1,050

question 74

Multiple Choice

A $1,000 par value bond is currently valued at $1,050.The bond pays interest semi-annually,has 9 years to maturity,and has a yield to maturity of 7.72 percent.The coupon rate is ________ percent and the current yield is ________ percent.

• A) 7.80; 6.21
• B) 8.00; 7.31
• C) 8.00; 7.51
• D) 8.08; 7.66
• E) 8.50; 8.10

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Definitions:

Accounting Records

Documents and records that a business maintains to keep track of its financial transactions, assets, and liabilities.

Market Value

The current price at which an asset or company can be bought or sold in the marketplace.

Purchase Price

The amount paid or agreed to be paid by the buyer for goods or services or to acquire an asset.

Economic Performance

An evaluation of how effectively a country, sector, or organization is using its resources to achieve its objectives and generate wealth.