Which one of the following statements is NOT true?Group of answer choicesThe yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond.A bond's yield to maturity changes daily as interest rates increase or decrease.The realised yield is the yield that the investor earns if the bond is held to maturity, and all the coupon and principal payments are made as promised.The yield to maturity is the yield that the investor earns if the bond is held to maturity, and all the coupon and principal payments are made as promised.The term structure of interest rates shows the relationship between the yield to maturity and time to maturity.

A bond that is held to maturity A. will necessarily have a yield to maturity equal to the coupon rate. B. will necessarily earn the yield to maturity at the time of purchase. C. may earn more or less that its yield to maturity at the time of purchase because the rate at which coupons can be reinvested may change. D. will earn the yield to maturity at the date of maturity.

Which one of the following statements about bonds is correct?Group of answer choicesThe yield on a bond for a bond investor is generally a fixed rate.Bond prices vary inversely with interest rates.Most bonds pay interest annually.Bond coupon rates vary with interest rates.

Which of the following is true as it relates to bonds?Multiple ChoiceThe market interest rate is used to calculate the cash interest payments produced by the bond and the yield is used to determine the present value of a bondThe yield is used to calculate the cash interest payments produced by the bond and the contract interest rate is used to determine the present value of a bondThe yield is used to determine the present value of a bond and the contract rate is used to calculate the cash interest paymentsNone of these choices are correctThe coupon rate is used to calculate the cash interest payments produced by the bond and the nominal rate is used to determine the present value of a bond

Which of the following is correct for a bond investor whose bond offers a 5% current yield and an 8% yield to maturity?Select one:a.The bond is selling at a discount to par value.b.The bond has a high default premium.c.The promised yield is not likely to materialize.d.The bond must be a Treasury Inflation-Protected Security.

Which of the following statements is FALSE?a.The time remaining until the repayment date is known as the term of the bond.b.Bonds are usually less risky than shares.c.Bonds are securities sold by governments and corporations to raise money from investors today in exchange for promised future payments.d.By convention the coupon rate is expressed as an effective annual rate.e.Bonds typically make two types of payments to their holders.