Question: please answer quickly 7) A bond has a $1,000 face value, a market price of $1289, and pays interest payments of $69.50 every year. What

please answer quickly

7) A bond has a $1,000 face value, a market price of $1289, and pays interest payments of $69.50 every year. What is the coupon rate (not yield to maturity)? And is it a Premium or Discount bond? A) 7.03 percent; Discount Bond B) 6.95 percent; Premium Bond C) 6.95 percent; Discount Bond D) 7.03 percent; Premium Bond E) 8.14 percent; Premium Bond

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Answer the following question shown the picture down below 6-1 to 6-20 6-7. Tracer Manufacturers issued a 10-year bond six years ago. The bond's maturity value is $1.000. and its coupon interest rate...

1. Dizzy Corp. bonds bearing a coupon rate of 6%, pay coupons semiannually, have 10 years remaining to maturity, and are currently priced at $795 per bond. What is the yield to maturity? 2. D&G...

1. At t=0, a company issues a 4 year bond payable with a face value (principal) of $10,000. The B/P pays coupons of $1,000 every year for the first 2 years (Year 1 and Year 2); the B/P pays zero...

5. Suppose that the credit rating for Global Outfitter's corporate bond falls from A to BBB because of a major problem of global supplies being held up in the port of Los Angles. In that case we...

Help me solve the following questions. Show calculations please A bond ETF named TEX, comprises four bonds (face value =$1000 ): -There are 50 bonds with semi-annual payments, 5-year maturity, 4%...

PLEASE ANSWER THE FOLLOWING FINANCE QUESTION (a) (10 marks) What is IPO underpricing'? What are its potential causes? If you submit orders for shares in every IPO, can you expect to make money from...

Is ma cro solve with explaination 4. Explain the key distinctions between Solow Model with Technology and Without Technology (emphasize their predictions for what drives economic growth dynamics and...

Hello my friend please assist me with my discussion Interest Rates Negotiation is a soft skill that might just be one of the most important skills you will ever learn. For this Discussion you will...

Question 14 (1 point) How much in total would you have paid in interest through the first 12 months on a car costing $31,000 to be repaid over 40 months at 4.5% interest? 1) $1,153 2) $1,279 3)...

Here is are some multiple choice study questions I'm having trouble understanding. Some of the math questions to solve is difficult. Can you also explain to me how you determine each answers. Assume...

In Figure three identical conducting spheres form an equilateral triangle of side length d = 20.0 cm. The sphere radii are much smaller than d, and the sphere charges are qA = ?? 2.00nC, qB = ??...

Management Information system Assignment Practically all knowledge workers must know how to use information systems. Why? What changed the average citizens life more, the industrial revolution or the...

Which of the following revenue recognition situation requires recognizing revenue at the amount of present value? Multiple performance obligations. Time valunof money Consideration paid or payable...

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

Teamwork. Sit back-to-back with another student in the class so that neither of you can use nonverbal cues to complete this exercise. Take turns saying the following sentence aloud three times: Why...

While developing an oral report for a marketing class, Sara, one of your team members, locates an article that fits perfectly with your topic. Sara suggests that the group take several paragraphs...

Practice keeping your jaw, tongue, and lips flexible by saying the following sentences aloud three or more times each: (Objective 1) a. Loose lips sink ships. b. Which wristwatches are Swiss...