Posts Tagged ‘fixed’
Corporate Bonds Maturity

Question: A difference between a share of stock in a corporation and a corporate bond is that?
A.the bond owner has voting rights within the corporation whereas the stockholder does not.
B. the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits.
C. the share of stock is a legal claim while the bond is not.
D. stocks are issued in return for funds that are lent to the corporation.
Answer: B
Bonds: duration and maturity
Corporate Bonds Yields

Question: a treasury bond that matures in 10 years has a yield of 6%. a 10-year corporate bond has a yield of 9%. assume?
Answer: Assume the risk free rate is 6% and the market risk is 9%.
Finding a Bond's Yield Using the Texas Instruments BA-II Plus Calculator.