final exam

Among following statements, which one does not correspond to the nominal (periodical annual) interest rate? It is a contractual rate. It has no value on its own. Its value depends on the frequency of its capitalization. It is capitalized quarterly for the mortgages in Canada. Question 22 (1 point) You consider two bonds ( A and B ) that are identical (same company, same maturity, same coupon, etc.). The only difference between the two is that Bond A is convertible. We can state that: The required return (yield) on Bond A is superior relative to the expected return on Bond B. The required return (yield) on Bond A is inferior relative to the expected return on Bond B The required return (yield) on Bond A is equal to the expected return on Bond B. None of the answers is correct. You just purchased a convertible bond. Today, the strictly debt value is inferior relative to the conversion value. If the required return on common shares increases: The minimum price of the bond will decrease. The minimum price of the bond will increase. The minimum price of the bond remains the same. The strictly debt value of the bond will be superior to the conversion value. It is impossible to make that determination with this information. Question 20 (1 point) A zero-coupon bond constitutes A discount loan. A capitalized at maturity loan. An amortized loan. None of the answers is correct