Crowdly

Please calculate the present value PV of a bond having the following features:

YTM

(Yield to Maturity) = 11%

What does the coupon tell about a bond?

It is the sales price.

It conforms to a credit rating of the bond.

It represents the interest rate of the bond.

✅

The value of the bond at maturity.

Let’s have a bond

with the following features:

• Par

= $1,000

YTM

(Yield to Maturity) = 12%

What is the number of coupon payments?

Let’s have a bond

with the following features:

• Par

= $1,000

The Semiannual coupon payment is:

YTM

(Yield to Maturity) = 12%

160

120

What is the formula to calculate current yield of a bond?

Annual income x current price

Face value x interest rate

Annual income / current price

Interest rate / face value

Which of the following is true:

Let's have a bond with the following features:

Coupon
rate = 11%
Annual
coupons
Par
= $1,000
Maturity
= 10 years
YTM
(Yield to Maturity) = 7%

It is premium bond

It is a discount bond

Let’s have a bond

with the following features:

• Par

= $1,000

The Semi-annual yield is:

YTM

(Yield to Maturity) = 12%

✅

12%

16%

What are the two main types of stocks?

Common and Director

Preferred and Shares

Common and Preferred

Board and Preferred

What is a "preferred" stock?

It's a debt instrument, which holds a credit claim, and interest rate claim against the company.

✅

It's an equity instrument, which has voting rights and represents a share of the company.

It's both. It's a debt instrument, which holds a credit claim, and interest rate claim against the company. And at the same time it's an equity instrument, which has voting rights and represents a share of the company.

It's neither. It's a derivative instrument issued by the company as stock option. It allows to buy more stocks in future, and is often used as compensation for high level managers.