The rate of return required by investors in the market for owning a bond is called the:

Related MCQs

• Required rate of return>Coupon rate, the bond will be valued at
• 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?
• Which of the following would cause the required return on a bond to increase, everything else held equal?
• Which of the following would cause a bond’s required return to increase?
• Which of the following causes a lower required return on a bond?
• Which of the following causes a lower required return on a bond?
• A bond that makes no coupon payments (and thus is initially priced at a deep discount to par value) is called a_______ bond.
• The annual coupon of a bond divided by its face value is called the bond:
• 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?
• If coupon rate is equal to going rate of interest then bond will be sold