Anna buys a bond in the secondary market at $100 and waits for the bond to reach its maturity date.Which of the following statements is NOT correct?A.She pays $100 to another investor in exchange for the bond.B.She will receive $100 from the company that had borrowed money.C.She will NOT make any capital gain or loss.D.Her investment is not risky as she does not make any capital loss.

Which of the following statements is NOT correct?A.A bond is created in the primary market.B.An investor selling the bond to another investor is victim of a capital loss if he/she resells the bond at a lower price than it bought it.C.When the investor waits for the bond to mature at redemption date there is no capital loss.D.A bond is traded among investors in the secondary market.

L'oreal bonds were issued at $80 and are now trading in the secondary market at the price of $110.Which of the following statements is NOT correct?A.A new investor, who buys the bond now, makes a capital gain of $0 at the time of purchase.B.The transaction brings $30 new funding to the issuer.C.The issuer records a loss, unrelated to the fluctuations in the secondary market.D.A new investor, who buys the bond now and plans to keep it until maturity date, expects to make a capital loss of $10.E.An investor, who bought the bond at issue and sells it now, makes a capital gain of $30.

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.

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.

'Oreal, a beauty product company, issues $100 face value bonds at the price of $60. The maturity of the bond is 2 years and the bond pays coupons every six months. Which of the following statement is NOT correct?A.The change in equity at the time of each coupon payment due to amortisation alone is a gain of $10.B.After 1 year and a half, after the payment of a third coupon, the value of the bond recorded in the balance sheet of L'Oreal is $90.C.At the time of each coupon payment, the value of the bond in the balance sheet increases by $10.D.At maturity date, when amortization is complete, the redemption value (ignoring the final coupon) to get rid of the bonds from the balance sheet will be $100.E.The amortization value at the time of each coupon payment is $10.