1.kessel Inc, offers a ero-coupon bond that has the yield-to-maturity of similar bonds is 5%. What is the market price?

2. A chicago, illinois municipal bonds has a mturity date in 26 years, offers a 5.5% coupon rate, and is currently priced at $1022. If bond investors face a average tax rate of 25%, what woukd the yield be on a corporate bond with similar charecteristics?

3.Jakku corp bonds bearing a coupon rate of 15%, pays coupons semiannually, have two years remaining to maturity, and are currently priced at $980 per bond. what is the yield to maturity?

4.The bonds of genosis corp. carry a 10% coupon rate and mature in 4 years. Bonds of equivalent risk yield 7%. what is the market value of genosis's bonds?

5. Kamino corporation bonds carry a 10% coupon rate, pay coupons semiannually, and mature in 5 years. Similar bonds have a yield of 8%. What is the CURRENT YIELD for kamino corporation bonds?

6.A corporate bond has a yield 7.5 percent and a municipal bond has a yield of 5 percent. Which bond do you prefer if you are in the 35 percent tax bracket?

a. Muni bond

b.Corporate bond

c. There is no difference between the bonds. Either bond offers the same after tax yield for the investor.

7.If a yield to maturity of a bond is less that its coupon rate, the market value of the bond will be always belows its par value?

a. true

b.false

8.A bond carrying a 5% coupon rate that has a market price of $1000 has a yield to maturity that is...

a.greater than 5%

b.exactly 5%

c.less than 5%

d. not enough information to determine YTM

9.A bond with a face value of 1000$ that is currently selling more than 1000$ in the market is called a :

a.Par bond and the YTM

b.Par bond and the YTM>coupon rate

c.Premium bond and the YTM

d.Premium bond and the YTM>coupon rate

e.Discount bond and the YTM

f.Discount bond and the YTM>coupon rate

10.Which of the followin would lower the YTM for a bond?(select all that apply,if any)

a.Making the bond callable

b. makin the bond have a senior priority of payment status

c.Making the bond backed by a collateral

d.Not offering the bond to be convertible to stock.

e.making the bond's maturity date longer into the future.

11.What is nother term for a bond's contract that outlines the details of the bond such as the bond's priority of payment status, the convertability of the bond to anothe type of security, coupon rate, and maturity due?