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Round Dot Inns is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $ 1,000. The bonds will mature in 10 years and will be sold at par Given this, which one of the following statements is correct? a. The bonds will become discount bonds if the market rate of interest declines. b The bonds will pay 10 interest payments of $60 each. c The bonds will sell at a premium if the market rate is 5.5 percent. d. The final payment will be in the amount of $1, 060. Beyond Group offers a 5.5 percent coupon bond with a yield to maturity of 3.5 percent. The bond pays interest semiannually and matures in 10 years. Face value is $1,000. What is the value of the bond? a $013.56 b. $029.25 c. $1057.50 d. $1167.53 The bonds of XYZ, Inc. are selling at $1089.2 with a face value of $1000 and will mature in 10 years. The bonds pay a $40 semiannual coupon. What is the current yield on these bonds? a. 3.67 percent b. 5.21 percent c. 7.34 percent d. 0.59 percent Signature Sweets, Inc. has 7 percent semiannual bonds outstanding with 16 years to maturity. The bond is selling at $1154.6 with a lace value of $l000. What is the yield to maturity? a. 2.77 percent b. 3.49 percent c. 4.66 percent d. 5.53 percent An investor is considering two bonds, a 6.25 percent municipal bond and an 8.75 percent taxable bond. If the investor is in the 28 percent tax bracket, which bond should she chose? Why? a. the taxable bond; it has a higher after-tax yield b. the taxable bond, it has a lower after-tax yield c. the municipal bond; it has a lower after-tax yield d. the municipal bond, it has a higher after-tax yield Stephanie earned 10.2 percent on her investments last year. If her real rate of return was 6.6 percent, what was the inflation rate for the year? (Please use the exact formula, not the approximate one.) a. 3.38 percent b. 3.62 percent c. 4.59 percent d. 5.48 percent