FIN 351 TEXT CHAPTER 12 QUIZ 1 TO 5

FIN 351 TEXT CHAPTER 12    QUIZ 1  TO  5
1. The price of a bond represents simply the future value of interest payments.
2. Current yield is the annual interest divided by the price of the bond.
3. Current yield does not take the maturity date into consideration.
4. Yield to maturity considers annual interest, difference between current price and maturity value, and years to maturity.
5. Yield to maturity can be thought of as the internal rate of return of the bond.

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