For a standard U.S. Treasury bond, when are the following characteristics of the bond determined? The amounts of any interest payments. The dates of any interest payments. The bond's market yield. The bond's market price. The amount that the Treasury returns to the bondholder, when the bond matures. The price that the bondholder pays to the Treasury to acquire the bond. The maturity date. 1. 2. Fixed before the bonds are sold and does not change. Fixed when the bonds are sold and does not change. 3. Fluctuates continually.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12MC
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For a standard U.S. Treasury bond, when are the following characteristics of the bond
determined?
The amounts of any interest
payments.
The dates of any interest
payments.
The bond's market yield.
The bond's market price.
The amount that the
Treasury returns to the
bondholder, when the bond
matures.
The price that the
bondholder pays to the
Treasury to acquire the
bond.
The maturity date.
1.
2.
Fixed before the bonds are sold and
does not change.
Fixed when the bonds are sold and
does not change.
3. Fluctuates continually.
Transcribed Image Text:For a standard U.S. Treasury bond, when are the following characteristics of the bond determined? The amounts of any interest payments. The dates of any interest payments. The bond's market yield. The bond's market price. The amount that the Treasury returns to the bondholder, when the bond matures. The price that the bondholder pays to the Treasury to acquire the bond. The maturity date. 1. 2. Fixed before the bonds are sold and does not change. Fixed when the bonds are sold and does not change. 3. Fluctuates continually.
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