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QUESTION 12 Moerdyk Corporations bonds have a 18-year maturity, a 5.25% semiannual coupon, and a par value of $1,000. The going interest rate (r d
QUESTION 12
- Moerdyk Corporations bonds have a 18-year maturity, a 5.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 4.75%, based on semiannual compounding. What is the bonds price?
- A.1060.05
- B.1100.56
- C.1030.45
- D.1000
QUESTION 13
- OBrien Ltd.s outstanding bonds have a $1,000 par value, and they mature in 16 years. Their nominal yield to maturity is 9.00%, they pay interest semiannually, and they sell at a price of $960. What is the bonds nominal (annual) coupon interest rate?
- A.8.35%
- B.8.52%
- C.9.00%
- D.4.26%
QUESTION 14
- A 29-year, $1,000 par value bond has an 9.25% annual coupon. The bond currently sells for $945. If the yield to maturity remains at its current rate, what will the price be 4 years from now?
- A.940.85
- B.945.00
- C.946.77
- D.982.90
QUESTION 15
- A bond is currently priced at $900 on a par value of $1,000. Its term to maturity is 10 years and its coupon rate is 8% (stated annually, paid semiannually). If you buy the bond, and hold it to maturity, what would be the yield to maturity?
- A.10.25%
- B.8.00%
- C.9.00%
- D.9.58%
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