SIE Chapter 2 question and answer rated A+ 2023 updated
SIE Chapter 2 question and answer rated A+ 2023 updatedXYZ 4% preferred stock ($100 par value) is convertible @25. Currently, XYZ common trades at $28 per share; therefore, the parity of XYZ preferred stock is: A. $100 B. $112 C. $33 D. $53 - correct answer B. $112 What is true of a bond with an 8% coupon trading at 10% yield to maturity? A. The price of the bond went up B. It is trading at a discount C. Interest rates have fallen D. The bond is trading at a premium - correct answer B. The bond is trading at a discount Which of the following binds is trading at a premium? A. 8% coupon, 9.10 yield to maturity B. 8% coupon, 9.50 yield to maturity C. 8% coupon, 7.70 yield to maturity D. 8% coupon, 8.00 yield to maturity - correct answer C. 8%, 7.70 yield to maturity An investor buys an ABC Apr 85 call @3.25. With ABC trading @89.50, he exercises the call and immediately sells the stock for a A. loss of $125 B. gain of $125 C. loss of $50 D. gain of $450 - correct answer B. gain of 125 Which of the following bond ratings implies the highest yield?
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sie chapter 2 question and answer rated a 2023 up
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xyz 4 preferred stock 100 par value is convert
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what is true of a bond with an 8 coupon trading a
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which of the following binds is trading at a pr
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