Lara wants to buy a bond and hold it until it matures. Which of the following must occur if Lara is to realize a holding period return equal to the bond’s yield to maturity?

Related MCQs

• Bill, Jim, and Shelly are all interested in buying the same stock that pays dividends. Bill plans on holding the stock for 1 year. Jim plans on holding the stock for 3 years. Shelly plans on holding the stock until she retires in 10years. Which one of the following statements is correct?
• The Yield to Maturity of a bond is the same as_____________?
• Long period of bond maturity leads to
• These bonds are the bonds issued at a discount and repaid at a face value.
• Which of the following would cause the required return on a bond to increase, everything else held equal?
• A portfolio comprises of two stocks A and B. Stock A gives a return of 8%and stock B Gives a return of 7%. Stock A has a weight of 60% in the portfolio. What is the Portfolio Return?
• The price of a T-bill today is $97 and its maturity value is $100. The maturity is 6 months from now.
• An investor who expects increasing interest rates should purchase a bond that has a _____ coupon and a _____term to maturity.
• If the coupon rate is constant, the value of bond when close to maturity will be
• A bond that makes no coupon payments (and thus is initially priced at a deep discount to par value) is called a_______ bond.