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Hello, I need help with these questions please. Thank you QUESTION 1 A 5.5 percent $1,000 bond matures in 7 years, pays interest semiannually, and
Hello,
I need help with these questions please.
Thank you
QUESTION 1 A 5.5 percent $1,000 bond matures in 7 years, pays interest semiannually, and has a yield to maturity of 6.23 percent. What is the current market price of the bond? $945. 08 $947. 21 $959. 09 $959. 60 $962. 40 QUESTION 2 Jeffries, Inc. has 6 percent coupon bonds on the market that have 11 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 7.4 percent, what is the current bond price? $895. 88 $897. 08 $903. 14 $921. 42 $933. 33 QUESTION 3 A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in 3 years and pays interest annually. The coupon rate is 7 percent. What is the current price of this bond? $948.0 1 $949.6 0 $1,005. 26 $1,008. 18 $1,010. 13 QUESTION 4 Red Mountain, Inc. bonds have a face value of $1,000. The bonds carry a 7 percent coupon, pay interest semiannually, and mature in 13.5 years. What is the current price of these bonds if the yield to maturity is 6.82 percent? $989.5 0 $994.5 6 $1,015. 72 $1,018. 27 $1,020. 00 QUESTION 5 Smiley Industrial Goods has bonds on the market making annual payments, with 13 years to maturity, and selling for $1,095. At this price, the bonds yield 6.4 percent. What must the coupon rate be on these bonds? 6.67 percent 6.84 percent 7.23 percent 7.50 percent 7.83 percent QUESTION 6 Keyser Materials has 8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 102 percent of par. What is the current yield on Keyser Materials bonds? The YTM? The effective annual yield? 7.84 7.95 7.84 7.95 7.84 7.97 7.80 7.92 percent; percent percent; percent percent; percent percent; percent 7.80 percent; 7.92 percent; 7.92 percent; 7.84 percent; 7.80 percent; 7.92 percent; 7.95 percent QUESTION 7 LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon bonds on the market that sell for $972.78, make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? 6.25 percent 6.37 percent 6.50 percent 6.67 percent 6.75 percent QUESTION 8 The Hot Dog Shack wants to raise $1.2 million by selling some coupon bonds at par. Comparable bonds in the market have a 6.5 percent annual coupon, 15 years to maturity, and are selling at 97.687 percent of par. What coupon rate should The Hot Dog Shack set on its bonds? 6.25 percent 6.38 percent 6.50 percent 6.67 percent 6.75 percent QUESTION 9 A bond yielded a real rate of return of 3.87 percent for a time period when the inflation rate was 4.75 percent. What was the actual nominal rate of return? 8.58 percent 8.60 percent 8.80 percent 9.28 percent 9.36 percent QUESTION 10 AB Builders, Inc. has 12-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest annually and have a yield to maturity of 4.03 percent. What is the coupon rate? 3.75 percent 4.20 percent 4.25 percent 7.50 percent 8.40 percent QUESTION 11 A 6-year, semiannual coupon bond is selling for $991.38. The bond has a face value of $1,000 and a yield to maturity of 9.19 percent. What is the coupon rate? 4.50 percent 4.60 percent 6.00 percent 9.00 percent 9.19 percent QUESTION 12 A bond has a 7 percent coupon rate, a face value of $1,000, semiannual payments, and sells at par. The current yield is _____ percent and the effective annual yield is _____ percent. 6.76; 6.87 6.76; 6.96 7.00; 7.00 7.00; 7.12 7.23; 7.23 QUESTION 13 The $1,000 face value bonds of Jasper International have a 7.5 percent coupon and pay interest annually. Currently, the bonds are quoted at 98.27 and mature in 3.5 years. What is the yield to maturity? 6.97 percent 7.10 percent 7.24 percent 7.78 percent 8.09 percent QUESTION 14 If Treasury bills are currently paying 4.2 percent and the inflation rate is 2.6 percent, what is the approximate real rate of interest? The exact real rate? 1.60 percent; percent 1.60 percent; percent 6.80 percent; percent 6.80 percent; percent 6.80 percent; percent 1.56 1.64 6.67 6.87 6.92 QUESTION 15 Last year, you earned a rate of return of 11.29 percent on your bond investments. During that time, the inflation rate was 4.6 percent. What was your real rate of return? 5.30 percent 5.60 percent 5.75 percent 6.40 percent 6.70 percent QUESTION 16 The Deltona Instrument Company has 9 percent coupon bonds on the market with 6 years left to maturity. The bonds make annual payments. If the bond currently sells for $974.60, what is its YTM? 8.82 percent 8.90 percent 8.98 percent 9.58 percent 9.63 percent QUESTION 17 If your nominal rate of return is 14.38 percent and your real rate of return is 3.97 percent, what is the inflation rate? 8.47 percent 10.01 percent 10.54 percent 18.35 percent 18.92 percent QUESTION 18 The 7 percent annual coupon bonds of TPO, Inc. are selling for $1,021. The bonds have a face value of $1,000 and mature in 6.5 years. What is the yield to maturity? 6.42 percent 6.59 percent 6.63 percent 6.68 percent 6.70 percent QUESTION 19 Global Trade, Inc. has $1,000 face value bonds outstanding with a market price of $1,013. The bonds pay interest annually, mature in 11 years, and have a yield to maturity of 5.34 percent. What is the current yield? 5.39 percent 5.43 percent 5.50 percent 5.61 percent 5.77 percentStep by Step Solution
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