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Homework answers / question archive / Which one of the following statements about bonds is NOT true? The required rate of return, or discount rate, for a bond is the market interest rate called the bond's yield to maturity

Which one of the following statements about bonds is NOT true? The required rate of return, or discount rate, for a bond is the market interest rate called the bond's yield to maturity

Finance

Which one of the following statements about bonds is NOT true? The required rate of return, or discount rate, for a bond is the market interest rate called the bond's yield to maturity. The value, or price, of any asset is the future value of its cash flows. O The expected future cash flows are estimated using the coupons that the bond will pay and the maturity value to be received. To compute a bond's price, one needs to calculate the present value of the bond's expected cash flows.
Shrek Inc. recently issued bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%. The current market interest rate is 7.0%. What price should the bonds sell? 825.40 881.60 1051.32 O 945.68

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