Current yield--annual bond Answer: a Diff: E N
125. What is the bond’s current yield?
a. 8.65%
b. 8.00%
c. 8.33%
d. 7.88%
e. 8.95%
Yield to maturity--annual bond Answer: c Diff: M N
126. What is the bond’s yield to maturity?
a. 9.00%
b. 9.55%
c. 9.18%
d. 8.75%
e. 9.33%
Future bond value--annual payment Answer: e Diff: M N
127. Assume that the yield to maturity remains constant for the next three years. What will be the price of the bond three years from today?
a. $ 925
b. $ 956
c. $1,000
d. $ 977
e. $ 941
(The following information applies to the next two problems.)
A 12-year bond has an 8 percent annual coupon and a face value of $1,000.
The bond has a yield to maturity of 7 percent.
Bond value--annual payment Answer: d Diff: E N
128. What is the price of the annual coupon bond today?
$ 924.64
$1,000.00
$1,070.24
$1,079.43
$1,099.21
Future bond value--annual payment Answer: e Diff: E N
129. If the yield to maturity remains at 7 percent, what will be the price of the bond three years from today?
a. $ 937.53
b. $ 963.94
c. $1,026.24
d. $1,052.68
e. $1,065.15
(The following information applies to the next two problems.)
A 15-year bond has a par value of $1,000 and a 10 percent semiannual coupon. (That is, the bond pays a coupon of $50 every six months.) The bond has a price of $1,190 and it is callable in 5 years at a call price of $1,050.
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