Yield to maturity--annual bond Answer: a Diff: E
72. Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $865. The bonds will mature in 11 years. What is the yield to maturity on the bonds?
a. 10.09%
b. 11.13%
c. 9.25%
d. 8.00%
e. 9.89%
Yield to maturity--semiannual bond Answer: c Diff: E
73. A corporate bond has a face value of $1,000, and pays a $50 coupon every six months (that is, the bond has a 10 percent semiannual coupon). The bond matures in 12 years and sells at a price of $1,080. What is the bond’s nominal yield to maturity?
a. 8.28%
b. 8.65%
c. 8.90%
d. 9.31%
e. 10.78%
Yield to maturity--semiannual bond Answer: b Diff: E
74. You just purchased a $1,000 par value, 9-year, 7 percent annual coupon bond that pays interest on a semiannual basis. The bond sells for $920. What is the bond’s nominal yield to maturity?
a. 7.28%
b. 8.28%
c. 9.60%
d. 8.67%
e. 4.13%
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