finance data bank
80. The bonds issued by Stainless Tubs bear a 6
percent coupon, payable semiannually. The bonds mature in 11 years and have a
$1,000 face value. Currently, the bonds sell for $989. What is the yield to
maturity?
A. 5.87 percent
B. 5.92 percent
C. 6.08 percent
D. 6.14 percent
E. 6.20 percent
81. Greenbrier Industrial Products' bonds have a 7.60
percent coupon and pay interest annually. The face value is $1,000 and the
current market price is $1,062.50 per bond. The bonds mature in 16 years. What
is the yield to maturity?
A. 6.94 percent
B. 7.22 percent
C. 7.46 percent
D. 7.71 percent
E. 7.80 percent
82. Collingwood Homes has a bond issue outstanding
that pays an 8.5 percent coupon and matures in 18.5 years. The bonds have a par
value of $1,000 and a market price of $964.20. Interest is paid semiannually.
What is the yield to maturity?
A. 8.36 percent
B. 8.42 percent
C. 8.61 percent
D. 8.74 percent
E. 8.90 percent
83. Oil Well Supply offers 7.5 percent coupon bonds
with semiannual payments and a yield to maturity of 7.68 percent. The bonds
mature in 6 years. What is the market price per bond if the face value is
$1,000?
A. $989.70
B. $991.47
C. $996.48
D. $1,002.60
E. $1,013.48
84. Roadside Markets has a 6.75 percent coupon bond
outstanding that matures in 10.5 years. The bond pays interest semiannually.
What is the market price per bond if the face value is $1,000 and the yield to
maturity is 6.69 percent?
A. $999.80
B. $999.85
C. $1,003.42
D. $1,004.47
E. $1,007.52
85. Grand Adventure Properties offers a 9.5 percent
coupon bond with annual payments. The yield to maturity is 11.2 percent and the
maturity date is 11 years from today. What is the market price of this bond if
the face value is $1,000?
A. $895.43
B. $896.67
C. $941.20
D. $946.18
E. $953.30
86. Redesigned Computers has 5.25 percent coupon bonds
outstanding with a current market price of $546.19. The yield to maturity is
16.28 percent and the face value is $1,000. Interest is paid semiannually. How
many years is it until these bonds mature?
A. 6.64 years
B. 7.08 years
C. 12.41 years
D. 14.16 years
E. 28.32 years
87. Global Communications has a 7 percent, semiannual
coupon bond outstanding with a current market price of $1,023.46. The bond has
a par value of $1,000 and a yield to maturity of 6.72 percent. How many years
is it until this bond matures?
A. 12.26 years
B. 12.53 years
C. 18.49 years
D. 24.37 years
E. 25.05 years
88. You are purchasing a 25year, zerocoupon bond. The yield to maturity
is 8.68 percent and the face value is $1,000. What is the current market
price?
A. $106.67
B. $108.18
C. $119.52
D. $121.50
E. $128.47
89. Today, you want to sell a $1,000 face value zero
coupon bond you currently own. The bond matures in 4.5 years. How much will you
receive for your bond if the market yield to maturity is currently 5.33
percent? Ignore any accrued interest.
A. $696.60
B. $698.09
C. $741.08
D. $756.14
E. $789.22
90. The zero coupon bonds of D&L Movers have a
market price of $319.24, a face value of $1,000, and a yield to maturity of 9.17
percent. How many years is it until these bonds mature?
A. 11.92 years
B. 12.28 years
C. 12.73 years
D. 13.01 years
E. 13.47 years
91. A 16year, 4.5 percent coupon bond pays interest annually. The
bond has a face value of $1,000. What is the percentage change in the price of
this bond if the market yield to maturity rises to 5.7 percent from the current
rate of 5.5 percent?
A. 2.14 percent decrease
B. 1.97 percent decrease
C. 0.21 percent increase
D. 1.97 percent increase
E. 2.14 percent increase
92. The
Corner Grocer has a 7year, 6 percent annual coupon bond outstanding with a
$1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of
the following statements is correct if the market yield suddenly increases to
6.5 percent?
A. The bond price will increase by $57.14.
B. The bond price will increase by 5.29 percent.
C. The bond price will decrease by $53.62.
D. The bond price will decrease by 5.43 percent.
E. The bond price will decrease by 5.36 percent.
93. Blackwell bonds have a face value of $1,000 and
are currently quoted at 98.4. The bonds have a 5 percent coupon rate. What is
the current yield on these bonds?
A. 4.67 percent
B. 4.78 percent
C. 5.08 percent
D. 5.33 percent
E. 5.54 percent
94. The outstanding
bonds of The River Front Ferry carry a 6.5 percent coupon. The bonds have a
face value of $1,000 and are currently quoted at 101.6. What is the current
yield on these bonds?
A. 1.60 percent
B. 2.37 percent
C. 6.40 percent
D. 6.49 percent
E. 6.88 percent
95. The 7 percent, semiannual coupon bonds offered by
House Renovators are callable in 2 years at $1,054. What is the amount of the
call premium on a $1,000 par value bond?
A. $52
B. $54
C. $72
D. $84
E. $89
96. A corporate bond was quoted yesterday at 102.16 while today's
quote is 102.19. What is the change in the value of a bond that has a face
value of $6,000?
A. $0.30
B. $1.80
C. $3.00
D. $18.00
E. $180.00
97. A
10year, 4.5 percent, semiannual coupon bond issued by Tyler Rentals has a
$1,000 face value. The bond is currently quoted at 98.7. What is the clean
price of this bond if the next interest payment will occur 2 months from
today?
A. $987.00
B. $994.50
C. $1,002.00
D. $1,011.25
E. $1,022.50
98. A
Treasury bond is quoted at a price of 105:15. What is the market price of this
bond if the face value is $5,000?
A. $5,005.15
B. $5,105.15
C. $5,257.50
D. $5,273.44
E. $5,515.0099. A Treasury bond is quoted at a price of 101:14 with a
current yield of 7.236 percent. What is the coupon rate?
A. 7.20 percent
B. 7.28 percent
C. 7.30 percent
D. 7.34 percent
E. 7.39 percent
100. A
corporate bond is quoted at a price of 103.16 and carries a 6.50 percent
coupon. The bond pays interest semiannually. What is the current yield on one
of these bonds?
A. 6.24 percent
B. 6.30 percent
C. 6.36 percent
D. 6.62 percent
E. 6.66 percent
101. A
Treasury bond is quoted at a price of 106:23 with a 3.50 percent coupon. The
bond pays interest semiannually. What is the current yield on one of these
bonds?
A. 3.06 percent
B. 3.19 percent
C. 3.28 percent
D. 3.33 percent
E. 3.38 percent
102. A
Treasury bond is quoted as 99:11 asked and 99:09 bid. What is the bidask
spread in dollars on a $5,000 face value bond?
A. $0.03
B. $0.63
C. $1.00
D. $3.13
E. $6.25
103. The
semiannual, 8year bonds of Alto Music are selling at par and have an effective
annual yield of 8.6285 percent. What is the amount of each interest payment if
the face value of the bonds is $1,000?
A. $41.50
B. $42.25
C. $43.15
D. $85.00
E. $86.29
104. A bond
that pays interest annually yielded 7.47 percent last year. The inflation rate
for the same period was 6.10 percent. What was the actual real rate of return
on this bond for last year?
A. 1.19 percent
B. 1.25 percent
C. 1.29 percent
D. 1.36 percent
E. 1.41 percent
105. Getty Markets has bonds outstanding that pay a 5
percent semiannual coupon, have a 5.28 percent yield to maturity, and a face
value of $1,000. The current rate of inflation is 4.1 percent. What is the real
rate of return on these bonds?
A. 0.86 percent
B. 0.90 percent
C. 1.04 percent
D. 1.13 percent
E. 1.19 p

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