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Question # 00005272 Posted By: spqr Updated on: 12/13/2013 01:52 PM Due on: 12/30/2013
Subject Finance Topic Finance Tutorials:
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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 25-year, zero-coupon 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 16-year, 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 7-year, 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, semi-annual 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 10-year, 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 bid-ask 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, 8-year 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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Tutorials for this Question
  1. Tutorial # 00005082 Posted By: spqr Posted on: 12/13/2013 02:19 PM
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    value is $1,000 and the yield to maturity is 6.69 percent? A. $999.80 ...
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