What is a bond?

Bonds Valuation HCT

Quiz
•
Business, Other
•
University
•
Medium
Hoz Seh
Used 5+ times
FREE Resource
24 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
an agreement or friendship
binding security
something that binds, fastens, confines, or holds together
a type of debt a company issues to investors
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A bond issued by a corporation is called a ________ .
corporate bond
market share
stock option
share of stock
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a coupon?
something you use in a supermarket to decrease your cost
an asset bought in the stock market
used in the stock market to lessen the initial cost of stocks
the interest rate on a bond at the time it is issued
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The rate of interest on a bond is called the ________ .
bond rate
coupon rate
discount rate
interest rate
5.
MULTIPLE CHOICE QUESTION
45 sec • 2 pts
A bond with a face value of $1,000 and a coupon rate of 7% will pay how much annually in interest?
A. $70
B. $100
C. $7
D. $700
6.
MULTIPLE CHOICE QUESTION
2 mins • 2 pts
1. Etisalat PLC 2030 Fibre Optic Bond has an annual coupon rate of 10% and a Par Value of $1,000 and a price of $1,400. Given this information, the bond’s current yield is __________
7.14%
8.2%
6.1%
7.9%
Answer explanation
Answer: Coupon rate = 10% and Par Value = $1,000. Bond Price = $1,400
Coupon Payment ($) = 10% x $1,000 = $100.
Current Yield = Coupon Payment / Bond Price x 100
Current Yield = $100 / $1,400 x 100
Current Yield = 7.14%
7.
MULTIPLE CHOICE QUESTION
2 mins • 2 pts
Emaar PLC 2025 Blue Cement Bond has a coupon $90 and a Par Value of $1,000 and a price of $1,400. Given this information, the bond’s current yield is ________
6.9%
7%
6.42%
5.5%
Answer explanation
Answer: Coupon rate = 10% and Par Value = $1,000. Bond Price = $1,400
Coupon Payment ($) = $90.
Current Yield = $90 / $1,400 x 100
Current Yield = 6.42%
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