Question details

Multiple Choice
$ 1.00

The stated interest payment, in dollars, made on a bond each period is called the bonds:

            A)   Coupon.

            B)   Face value.

            C)   Maturity.

            D)   Yield to maturity.

            E)   Coupon rate. 

 

The principal amount of a bond that is repaid at the end of the loan term is called the bonds:

            A)   Coupon.

            B)   Face value.

            C)   Maturity.

            D)   Yield to maturity.

            E)   Coupon rate. 

 

The rate of return required by investors in the market for owning a bond is called the:

            A)   Coupon.

            B)   Face value.

            C)   Maturity.

            D)   Yield to maturity.

            E)   Coupon rate. 

 

The annual coupon of a bond divided by its face value is called the bonds:

            A)   Coupon.

            B)   Face value.

            C)   Maturity.

            D)   Yield to maturity.

            E)   Coupon rate. 

 

5. A bond with a face value of $1,000 that sells for less than $1,000 in the market is called a:

            A)   Par bond.

            B)   Discount bond.

            C)   Premium bond.

            D)   Zero coupon bond.

            E)   Floating rate bond. 

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