13.a

13.b

13.c

13.d

Bond PQR has a face value of $1000 and pays coupon on an annual basis. The coupon rate is 10% and the YTM is 8%. The bond will mature in 5 years. If the YTM suddenly increases to 10%, which of the following is true? The price of the bond goes down The bond trades at a discount The price of the bond goes up None of the above All else constant, a coupon bond that is selling at a premium, must have: a coupon rate that is equal to the yield to maturity. a market price that is less than par value. semi-annual interest payments. a yield to maturity that is less than the coupon rate. A bond that matures in 4 years sells for $1,055.40. The bond has a face value of $1,000 and a yield to maturity of 4.472% and pays coupons semi-annually. What is current yield of this bond? O 4.47% 5.69% 6.00% 6.18% If you buy a 10-year 6% coupon bond today (right after the coupon payment) and sell it next year (right after the next coupon payment), what is your expected capital gain yield? Assume the bond pays annual coupons, the face value is $1,000 and YTM=8% 01.01% 01.07% 2.86% 3.50%