Essentials of Investments BODIE I KANE | MARCUS Ninth Edition sa May, 1992, pandhut Student Edition Learning Center Home >> Chapter 10 > Multiple choice Quir Course-wide Content How the Market was Multiple Choice Quiz See olied pages Chapter Quizzes Multiple choice Quiz A 20-year maturity band with par value 31 More Resources should you pay for this bone? Par value 1,003 males seriamual payments at a coupon rate of 84. The yied to maturity is 99. Excel Seregsheets OA) $1,000 Related Westes OB) $1,000 Oc) s966 OD) 5906 Abond with a par value of $1,000 has a 6 non rate. Interest is paid semiannually and the price of the bond $1,025. What is the current yield of S1,000 has a 6 annual coupon rat OA) 3.0% OB) 2.9% Oc) 6.2% OD) 5.9% A semannual coupon bond is currently selling tot 142.12. The bond has a maturity of 10 years, a par value of $1,000 and a coupan rate. What is the yield to maturity? OA) 3.59% OB) 7.0% Oc) 7.5% OD) 9.096 A coupon bond paying semiannual interest is reported as having an ask price of 1139% of Es $1,000 par value. If the last interest payment was made two months ago and the coupon rate is 54, what is the invoice price of the bond? OA) $1,113.52 O8) s1,145,48 Oc) s1,121.76 OD) $1,138.33 A 15-year maturity zero-coupon bond has a yield to maturity of 4% and a par value of $1,000. The price of the bond is imputed interest in the first year is OA) $400.00; $15.00 O8) $400.00: $40.00 Oc) $555.26; $40.00 OD) $555.26; $22.22 One year ago, vou purchased an annual coupon bond for $817.84. At that time the bond had a maturity of 15 years, a face value of $1,000, a coupon rate of Sw, and a yield to maturity of 7%. One year later, the yield to maturity increased to 7.5%. What is the total rate of return for the year? OA) 9.79945 O8) 7.504% Oc) 3.75% OD) 2.44% Yau just purchased a 10-year maturity, semiannual coupon bond for $1,148.77. The bond has a face value of $1,000, a coupon rate of 89%, and a yield to maturity of 6%. The bond is callable in four years at $1,080. What is the yield to call? OA) 5.6% OB) 6.0% Oc) 7.2% OD) 8.04% Ali of the following are true about the yield to maturity excepr.: OA) YTM depends only on the bond's coupon, current price, and par value at maturity. OD) YTM can be interpreted as a measure of the average rate of return if the investment in the bond is held until the bond matures. OC) YTM is the compound rate that makes the future value of a band's payments equal to its price. OD) The bond's yield to maturity is the internal rate of return on an investment in the bond. A bond's invoice price is equal to OA) the present value of coupon interest pavements plus the present value of par value OB) the present value of par value plus accrued interest
