6 Dizzy Corp. Bonus tate.edu/webapps/assessment/take/launch.jsp?course assessment_id-_382955_1&course_id_1709205_1&content id=_90944221&step=r Question Completion Status: QUESTION 3 J&J Inc. just issued a bond with a $1,000 face value and a coupon rate of 6.00%. The bond has a life of 20 years, pays semi-annual coupons, can be called in 5 years, and has a call premium of one year's interest, and is selling for $1,125. What is the Yield to Call for this bond? 4.2849 2.1424 3.713 8.572 QUESTION 4 What is the market value of an 18 year semiannual bond that has a coupon rate of 5.25%, $1,000 face value, and a 7.5% YTM? 781.62 804.72 779.72 1091.71 QUESTIONS Your broker offers you the opportunity to purchase a bond with coupon payments of $90 per year and face value of $1000. If the yield to maturity on similar bonds is 11%, this bond should: Sell for the same price as the similar bond regardless of their respective maturities. Sell at a premium Sell at a discount Sell for either a premium or a discount but it's impossible to tell which Sell for par value 6 Dizzy Corp. Bonus tate.edu/webapps/assessment/take/launch.jsp?course assessment_id-_382955_1&course_id_1709205_1&content id=_90944221&step=r Question Completion Status: QUESTION 3 J&J Inc. just issued a bond with a $1,000 face value and a coupon rate of 6.00%. The bond has a life of 20 years, pays semi-annual coupons, can be called in 5 years, and has a call premium of one year's interest, and is selling for $1,125. What is the Yield to Call for this bond? 4.2849 2.1424 3.713 8.572 QUESTION 4 What is the market value of an 18 year semiannual bond that has a coupon rate of 5.25%, $1,000 face value, and a 7.5% YTM? 781.62 804.72 779.72 1091.71 QUESTIONS Your broker offers you the opportunity to purchase a bond with coupon payments of $90 per year and face value of $1000. If the yield to maturity on similar bonds is 11%, this bond should: Sell for the same price as the similar bond regardless of their respective maturities. Sell at a premium Sell at a discount Sell for either a premium or a discount but it's impossible to tell which Sell for par value