Yield to call Answer: a Diff: M N
96. A bond with a face value of $1,000 matures in 12 years and has a
9 percent semiannual coupon. (That is, the bond pays a $45 coupon every six months.) The bond has a nominal yield to maturity of 7.5 percent, and it can be called in 4 years at a call price of $1,045. What is the bond’s nominal yield to call?
a. 6.61%
b. 11.36%
c. 3.31%
d. 9.98%
e. 5.68%
Yield to call--annual bond Answer: a Diff: M
97. A corporate bond that matures in 12 years pays a 9 percent annual coupon, has a face value of $1,000, and a yield to maturity of 7.5 percent. The bond can first be called four years from now. The call price is $1,050. What is the bond’s yield to call?
a. 6.73%
b. 7.10%
c. 7.50%
d. 11.86%
e. 13.45%
Yield to call--annual bond Answer: b Diff: M
98. A bond that matures in 11 years has an annual coupon rate of 8 percent with interest paid annually. The bond’s face value is $1,000, and its yield to maturity is 7.5 percent. The bond can be called 3 years from now at a price of $1,060. What is the bond’s nominal yield to call?
a. 9.82%
b. 8.41%
c. 8.54%
d. 8.38%
e. 7.86%
Yield to call--semiannual bond Answer: a Diff: M
99. A corporate bond with 12 years to maturity has a 9 percent semiannual coupon and a face value of $1,000. (That is, the semiannual coupon payments are $45.) The bond has a nominal yield to maturity of
7 percent. The bond can be called in three years at a call price of $1,045. What is the bond’s nominal yield to call?
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