Question: 2) The difference between the initial bond price and the maturity value is amortized for tax purposes over the life of a zero - coupon

2) The difference between the initial bond price and the maturity

2) The difference between the initial bond price and the maturity value is amortized for tax purposes over the life of a zero - coupon bond.

True or False

3) The decision to lease rather than purchase will not be affected by the method of amortization used under the purchase method.

True or False

Ajax Corp. has a bond with a coupon rate of 12%, maturing in 15 years at $1,000 per bond. The current market price is $960. What is the current yield? Multiple Choice 12.8% 126% 120% 11.5%

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