Company A issues a one year discount bond that pays $1,250 and has a price today of $1,100. Company B also issues a one
Posted: Sun May 29, 2022 6:14 pm
Company A issues a one year discount bond that pays $1,250 and
has a price today of $1,100. Company B also issues a one year
discount bond, and this bond pays $4,200 and has a price today of
$3,800. In this case, bond B has a _____ yield than the bond issued
by A, and this could be because A has a _____ default risk.
higher; higher
higher; lower
lower; lower
lower; higher
has a price today of $1,100. Company B also issues a one year
discount bond, and this bond pays $4,200 and has a price today of
$3,800. In this case, bond B has a _____ yield than the bond issued
by A, and this could be because A has a _____ default risk.
higher; higher
higher; lower
lower; lower
lower; higher