1. Question 54

   1 Point

   The following information applies to the next 5 questions.

   Now, it is 1/1/2015. Company ABX has a 9% annual coupon bond which matures in three years from today, i.e., in 12/31/2017. The YTM of the bond is 10%.

   What is the current market price of the bond?

   1. $957.25

   2. $967.67

   3. $975.13

   4. $982.64

   5. $1,011.23

2. Question 55

   1 Point

   Suppose you buy this 9% coupon bond with time to maturity of 3 years and sell after the first coupon payment, i.e., after one year. What is the selling price of the bond? Assume the required rate of return remains at 10%.

   1. $957.25

   2. $967.67

   3. $975.13

   4. $982.64

   5. $1,011.23

3. Question 56

   1 Point

   In the above, what would be the total rate of return for the 1-year investment?

   1. 9.5%

   2. 9.67%

   3. 10%

   4. 10.23%

   5. 10.56%

4. Question 57

   1 Point

   Suppose on Jan. 1, 2015, ABX's 9% coupon bond has a price of $951.13. What is the yield to maturity of the bond?

   1. 9.5%

   2. 10%

   3. 10.5%

   4. 10.75%

   5. 11%

5. Question 58

   1 Point

   Suppose on May 1, 2015, ABX's 9% coupon bond has an ask price of 1,020. What is the invoice price of the bond?

   1. 1,020

   2. 1,040

   3. 1,050

   4. 1,060

   5. 1,075