1. Intrest rate is 6.5%,Year of Maturity is 2030
You were given information about a bond issued by CVT. If the yield to maturity is 6.2%, then the bond will quote at .
2. You were given information about a bond issued by CVT. If the price of the bond is $964.39, then the yield to maturity on the bond (to two decimal places as a percentage) is %.
3. Which investors have the prior claim on the cash flows of a corporation?
A. shareholders
B. common stock holders
C. preferred stock holders
D. bondholders
4. The difference between the yield on a 30-year high investment grade bond (AAA) and the yield on the 30-year Treasury bond would is which of the following?
A. the risk-free rate
B. the credit (default) risk premium
C. the maturity premium
D. the liquidity premium
E. the real rate of return
5. You financed the purchase of a $18,000 car with a five-year loan from your bank.
A. The bank issued you a note.
B. The bank bought a note from you.
C. You purchased a bond from the bank.
D. You bought a bill from the bank.
E. You sold a bond to the bank.