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Percent Coupon Bond Quiz

The yield to maturity of a one-year, simple loan of Rs. 500 that requires an interest payment of Rs. 40 is ___________.

The yield to maturity of a one-year, simple loan of Rs. 400 that requires an interest payment of Rs. 50 is _____________.

What is a consol bond?

When a bond’s price falls, its yield to maturity _________ and its current yield _________.

The yield to maturity for a one-year discount bond is equal to __________.

Which of the following is true about the fisher equation?

If you expect the inflation rate to be 15 percent next year and a one-year bond has a yield to maturity of 7 percent, then what is the real interest rate on this bond?

If you expect the inflation rate to be 5 percent next year and a one-year bond has a yield to maturity of 7 percent, then what is the real interest rate on the bond?

What is the return on a 5 percent coupon bond that initially sells for Rs. 1,000 and sells for Rs. 1,200 one year later?

What is the return on a 5 percent coupon bond that initially sells for Rs. 1,000 and sells for Rs. 900 one year later?