Please help me with the following question, there is only one option that is correct. Please also explain why is the opt

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Please help me with the following question, there is only one option that is correct. Please also explain why is the opt

Post by answerhappygod »

Please help me with the following question, there is only one
option that is correct. Please also explain why is the option
correct and other options are wrong.
Please Help Me With The Following Question There Is Only One Option That Is Correct Please Also Explain Why Is The Opt 1
Please Help Me With The Following Question There Is Only One Option That Is Correct Please Also Explain Why Is The Opt 1 (99.45 KiB) Viewed 24 times
QUESTION 1 The following (semi-annual coupon) bond price quotes are representative over-the-counter quotations as of 3 PM EST. Issuer Coupon Rate (%) Maturity Month / Year Bid Ask Ask Yield (%) Collegetown Bagel Co. 6.125 April / 2027 (а. 137.3203 2.225 Apolo Food Inc. 6.125 April / 2027 (b) (d) Credit Rating AAA BB Which of the following statement(s) is CORRECT according to the above? (Both bonds are in the same market and are not callable nor prepayable.) i. (d) > 6.125 ii. (b) < 137.3203 iii. Macaulay duration of Apolo Food Inc.'s bond should be higher than that of Collegetown Bagel. iv. If investors in this market generally prefer safer fixed income assets, it is more likely that 137.3203 - (a) < (b) - (c) O i and ii ji and iv O i, ii and iii O ii, iii and iv
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply