Bond has market price that exceeds its face value

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1. A bond has a market price that exceeds its face value. Which one of these features currently applies to this bond?

Yield to maturity less than the coupon rate.

Discount bond.

Yield to maturity equal to the current yield.

Currently selling at par.

Current yield greater than coupon rate.

2. Assume 1-year interest rate 1-year from now is 1F1, Current 1-year rate = S1 = 1.35%, Current 2-year rate = S2 = 1.50%. Calculate the market expectation for the one year interest rate from today.

3. What is the standard amount of insurance for loss of use( coverage part D )under the homeowners insurance policy? A. 10% of the dewlling limit of insurance B.unilimited C. 30% of the dewlling limit of insurance D. must be added by special endorsement

Reference no: EM131859488

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