Yield to maturity--semiannual bond Answer: d Diff: E N
130. What is the semiannual coupon bond’s nominal yield to maturity (YTM)?
a. 6.37%
b. 6.73%
c. 7.60%
d. 7.83%
e. 8.25%
Yield to call--semiannual bond Answer: a Diff: E N
131. What is the semiannual coupon bond’s nominal yield to call (YTC)?
a. 6.37%
b. 6.73%
c. 7.60%
d. 7.83%
e. 8.25%
(The following information applies to the next two problems.) Hastings Motors has bonds outstanding with 12 years left until maturity. The bonds have a $1,000 par value and an 8 percent annual coupon. Currently, the bonds sell at a price of $1,025.
Yield to maturity--annual bond Answer: a Diff: E N
132. What is the annual coupon bond’s yield to maturity?
a. 7.67%
b. 7.80%
c. 8.00%
d. 8.13%
e. 8.33%
Price risk--annual bond Answer: e Diff: M N
133. What will be the percentage increase in the annual coupon bond’s price if the yield to maturity were to immediately fall by one percentage point (100 basis points)?
a. 5.7%
