Stock A or B 53. Bond A has 20 years to maturity and...
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Finance
Stock A or B
53. Bond A has 20 years to maturity and Bond B has 10, if interest rates go up, all else equal, which bond will have the greater price decrease.
54. Bond A has a yield to maturity of 8%, Bond B has a yield to maturity of 9%, All else equal if interest rates decrease, which bond will have the higher capital gain?
55. Bond A pays an annual coupon of $100, Bond B pays $40 coupons semi annually, All else equal, which bond has the higher duration.
56. Bond A is a discount bond, Bond B is a premium bond, all else equal, if interest rates remain the same, which bond will increase over the next year?
57. Bond A is a corporate bond, Bond B is a municipal Bond, all esle equal, if you are in a very high tax bracket, which bond should you choose.
58. Yield A is a promised yield, Yield B is an expected yield, for a company recently experiencing financial distress, which yield is likely to be greater
59. Bond A is callable, Bond B is not. Bond A has a coupon of 8.3% and Bond B has a coupon of 8% both bonds are currently selling at par value. If you expect interest rates to rise, which bond should you choose.
60. Bond A is a par bond, Bond B is a discount Bond, if interest rates are expected to fall, all else equal, which bond is more likely to be called.
61. Bond A has a coupon rate of 2% and a yield of 3%. Bond B has a coupon rate of 2% and a yield of 1.5%, Which one has a higher current yield.
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