A bond market analyst states, “The current term structure of interest rates is upward sl

A.bond rate

B.risk-adjusted rate

C.treasury bond interest

D.market rate

If market interest rates rise, the price of a callable bond, compared to an otherwise

identical option-free bond, will most likelydecrease by:

A.more than the option-free bond.

B.the same amount as the option-free bond.

C.less than the option-free bond.

A.$729

B.$924

C.$870

D.$1,000

E.none of the above

A.discount rate

B.contract rate

C.market rate

D.effective rate

Bao Capital issed a 5-year, $50 million face, 6% semiannual bond when market interest rates were 7%.The market yield of the bonds was 8% at the beginning of the next year.What is the initial balance sheet liability, and what is the interest expense that the company should report for the first half of the second year of the bond’s life (the third semiannual period)”

A.$700

B.$810

C.$870

D.$1,000

E.none of the above

A.B-share

B.H-share

C.A-bond

D.A-share

Bao Capital issed a 5-year, $50 million face, 6% semiannual bond when market interest rates were 7%.The market yield of the bonds was 8% at the beginning of the next year.What is the initial balance sheet liability, and what is the interest expense that the company should report for the first half of the second year of the bond’s life (the third semiannual period)”

A.annual interest divided by the current market price

B.the yield to maturity

C.annual interest divided by the par value

D.the internal rate of return