Question
A. You work as a risk manager for Fuji Mountain Bank (FMB) which has assets of $10 million invested in a 3-year, 8% semi-annual coupon
A. You work as a risk manager for Fuji Mountain Bank (FMB) which has assets of $10 million invested in a 3-year, 8% semi-annual coupon T-note with an interest rate of 6%. What is the value of FMB's assets?
| A. | $9.76 million | |
| B. | $12.02 million | |
| C. | $10.54 million | |
| D. | $11.38 million |
QUESTION 15
You purchase a 5-year corporate bond. The coupon rate of the bond is 8%, paid semi-annually, and its par value is $1,000. The YTM is 6%. What is the price of the bond?
| A. | $996.33 | |
| B. | $1,085.30 | |
| C. | $1,074.25 | |
| D. | $955.47 |
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
2nd Edition
0072318252, 9780072318258
