Ytm - Study guides, Class notes & Summaries

Financial Management - Exam 2 Verified Solutions Bond ️long-term debt security usually issued by a corporation or government body Bonds ️original maturity of 10 years or more Notes ️shorter term; 10 years or less Mortgage Bonds ️asset-backed securities; specific physical assets used as collateral Collateral Trust Bonds ️ABS; specific non-physical assets used as collateral. Example. Cash flows from specific projects, trademarks, copyrights Debentures ️unsecured bond; mu...

FINANICAL MANAGEMENT UNIT #3 BONDS GB550-3 Calculate the value of a firm through the use of discounted cash flow analysis. Problems: 1. Complete problem: Yield to Maturity for Annual Payments XZY Corporation’s bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $950. What is their yield to maturity? Show your work. N=14, PV =950, PMT= 10, FV = 1000, CPT=1/Y A bond that...

WGU C214 Financial Management PreAssessment Exam| Latest 2023/ 2024| Questions and Verified Answers| A+ Grade QUESTION A company issues bonds at a market price of $925. The face value is $1,000. The bonds mature in 10 years, and the coupon rate is 6% compounded semiannually. What is the yield to maturity (YTM) on the company's bonds? Answer: 7.06% QUESTION Which securities are issued by local governments and are usually tax exempt at the federal level? An...

Allison just received her semiannual payment of $35 on a bond she owns. Which term refers to this payment? a. coupon b. face value c. discount d. call premium e. yield - Answer-coupon Bert owns a bond that will pay him $45 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 called? a. coupon b. face value c. discount d. yield e. dirty price - Answer-face value A bond's principal is repaid on the ______ date a. coupon b. yield c. maturity d....

STC SIE Chapter 6 UPDATED Exam Questions and CORRECT Answers What does one basis point represent as a percentage? - Ans 0.01% As a bond's price rises, its current yield will ____. - Ans Fall True or False: For trades involving bonds, confirmations must disclose the yield computation used (i.e., YTM or YTC). - Ans True On a discount bond, which yield is the highest? - Ans YTM

WGU C214 Final Exam Questions with verified Answers Already Graded A 1. Coupon Rate--Answer-- The interest rate that a company promises to pay on bonds 2. Market Rate--Answer-- The interest rate on other comparable bonds 3. Par Value--Answer-- The amount payable on maturity of the bond 4. Market rate--Answer-- Same as YTM - Yield to Maturity 5. Gordon Growth Model--Answer-- Assumes stable growth rates and does not incorporate risk

SYTM 6508 Week 4 Practice 2024 Latest New Generation 75+Questions With Verified Correct Answers 100% Graded A+ Topscore!!!Pass!!!SYTM 6508 Week 4 Practice 2024 Latest New Generation 75+Questions With Verified Correct Answers 100% Graded A+ Topscore!!!Pass!!!SYTM 6508 Week 4 Practice 2024 Latest New Generation 75+Questions With Verified Correct Answers 100% Graded A+ Topscore!!!Pass!!!SYTM 6508 Week 4 Practice 2024 Latest New Generation 75+Questions With Verified Correct Answers 100% Graded A+ To...

FINA361 UNIT 3 EXAM 2024 WITH 100% ACCURATE SOLUTIONS Which of the following is NOT a capital budgeting criteria? A. YTM B. NPV C. IRR D. MIRR E. Payback - ANSWER ☑☑A. YTM - yield to maturity (for bonds) Which of the following is NOT a shortcoming of the IRR measure? A. Possibility of having more than one IRR. B. When a project is good, the measure is too optimistic. C. Projects that generate little wealth can have a bigger IRR than those which generate more wealth. D. ...

CFA Level 1 - Fixed Income Test || With 100% Accurate Solutions CFA Level 1 - Fixed Income Test || With 100% Accurate Solutions Type of Risks - ANSWER - 1) Interest rate risk 2) Yield curve risk 3) Call risk 4) Prepayment risk 5) Reinvestment risk 6) Credit risk 7) Liquidity risk 8) Exchange-rate risk 9) Inflation risk 10)Volatility risk 11) Event risk 12) Sovereign risk Interest Rate Risk - ANSWER - The effect of changes in the prevailing market rate of interest on bond values. Inve...

All else equal, ________ bonds have more reinvestment rate risk than ________ bonds. correct answers high-coupon; low-coupon A bond with a face value of $1,000 currently sells for a discount. Which of the following statements is most correct? correct answers The bond's yield to maturity is greater than its coupon rate. All else equal, if a bond's yield-to-maturity increases its price will _______. correct answers fall True or False: A call provision gives the investor the right to for...