Assume a Semi-Annual Coupon Bond Matures in 3 Years,has a Face

question 79

Multiple Choice

Assume a semi-annual coupon bond matures in 3 years,has a face value of $1,000,a current market price of $989,and a 5 percent coupon.Which one of the following statements is correct concerning this bond?

• A) The current coupon rate is greater than 5 percent.
• B) The bond is a money market instrument.
• C) The bond will pay less annual interest now than when it was originally issued.
• D) The current yield exceeds the coupon rate.
• E) The bond will pay semi-annual payments of $50 each.

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Definitions:

Discipline Employees

The act of enforcing rules and correcting misconduct or poor performance in the workplace to maintain order and efficiency.

Directive

An authoritative instruction or guideline that directs action or establishes a policy for behavior.

General Direction

A broad outline or course of action that indicates a path forward but lacks specific details.

Position of Influence

A role or status that allows an individual to have an effect on the actions, behavior, or opinions of others.