Interest Rates and Bond Valuation

What is the term for the regular interest payments made on a bond?

What happens to the value of a bond if the market interest rate rises?

A bond with a face value of $1,000 has an annual coupon of $80 and 10 years to maturity. If the market interest rate for similar bonds is 8 percent, what is its current value?

If a bond's coupon rate is lower than its yield to maturity, the bond is known as a:

What is the primary risk faced by owners of long-term bonds from fluctuating interest rates?

Which of the following bonds has the greatest interest rate risk, assuming all other factors are equal?

What are debt securities sold by state and local governments called?

What is the key tax advantage of most municipal bonds for investors?

What is the primary difference between a bond's promised yield and its expected return?

According to the text, what are the two leading bond-rating firms?

What does a bond's credit rating primarily assess?

The price a dealer is willing to pay for a security is called the:

If you buy a bond between coupon payment dates, the price you actually pay is the:

If the nominal rate on an investment is 15.5 percent and the inflation rate is 5 percent, what is the exact real rate of interest?

What does the Fisher effect hypothesize about the relationship between inflation and nominal interest rates?

The relationship between short- and long-term interest rates is known as the:

Which of the following is NOT one of the three components that determines the shape of the term structure of interest rates?

An upward-sloping term structure of interest rates most likely reflects a belief that:

A bond's annual coupon divided by its price is known as its:

For a bond selling at a discount, which of the following is true?

A bond with a quoted price of $1,080.42 has a face value of $1,000 and a semiannual coupon of $30. What is its current yield?

What is a bond that pays no coupons at all and is offered at a price much lower than its face value called?

U.S. Treasury issues are considered to have no default risk because:

What does the extra compensation that investors demand for the possibility that an issuer other than the Treasury may not make all promised payments called?

A bond with a 12 percent annual coupon is payable semiannually. The price you actually pay for the bond is $1,080, and the next coupon is due in four months. What is the accrued interest on this bond?