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- The relationship between bond prices and the interest rate bonds pay: Seleccione una: a. is Positive O b. depends on stock prices c. is unrelated d. is inverse or negativeWhich of the following statements is CORRECT? a. A bond is likely to be called if it sells at a discount below par. b. A bond is likely to be called if it sells at a premium above par c. A bond is likely to be called if its market price is equal to its par value. d. A bond is likely to be called if its market price is below its par value.Why does a bond’s par or face value differ from its market value? Cite your references
- when the bond price is above par or at a premium?Which of the following is TRUE about a bond's face (par) value? Select one: a. the face value of a bond is the same as the bond's price b. the par value of a bond is the interest payment c. the face value of a bond changes when yields change d. the value of a bond will always be equal to par at maturity.The theoretical floor value for a convertible bond is its A. pure bond value. B. onversion price. C. conversion value. D. par value.
- The carrying (book) value of a bond at the time when it is issued is always equal to its par value. O True O FalseTrue or False? Macaulay duration of measure of the curvature in the relationship between bond prices and bond yields.What happens when the bond's market rate is greater than the stated rate?