Question
On January 4th, 2017, Zack purchased a corporate bond of FGH Inc. at its market price of $1025. The bond pays a 3.75 percent coupon
On January 4th, 2017, Zack purchased a corporate bond of FGH Inc. at its market price of $1025. The bond pays a 3.75 percent coupon rate, which is paid out semi-annually, based on its face value of $1,000. The bond will mature on July 5th, 2024.
Question 43 (1 point)
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What would be dollar amount of each semi-annual coupon? (1 Mark)
Question 43 options:
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$15.50
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$18.75
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$17.15
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$16.25
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$20.75
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Question 44 (2 points)
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Based on the market purchase price of $1025, what would be the current yield that Zack would be receiving on these bonds? (2 Marks)
Question 44 options:
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3.97%
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3.72%
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3.66%
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4.09%
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4.05%
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Question 45 (2 points)
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What is the current yield to maturity that he would be receiving? (2 Marks)
Question 45 options:
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3.52%
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4.02%
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3.37%
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2.99%
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3.23%
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