Skyscraper 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%. What is the coupon rate?

Group of answer choices

3.75 percent

4.20 percent

7.50 percent

8.40 percent

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Question 2

5pts

Smooth Sailing Warehouse wants to issue 15-year, zero coupon bonds that yield 7.50% with semi-annual compounding. What price should it charge for these bonds if the face value is $1,000?

Group of answer choices

$331.40

$337.97

$362.14

$369.94

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Question 3

5pts

The coupon rate and the face value of the bond is contained in the

Group of answer choices

bond indenture.

bond's positive covenants.

the bond investor kit.

bond offering statement.

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Question 4

5pts

The existence of _____ in a bond by the bond issuer will require investors to increase the required return on a bond, all other things being equal.

Group of answer choices

a call provision

if the bond has seniority

sinking fund

some collateralamount

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Question 5

5pts

Protective covenants protect

Group of answer choices

the investor from interest rate risk.

the company in case of default.

bond investors from adverse actions by the company.

bond investors whose bonds are called by the company.

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Question 6

5pts

Which of the following is the best explanation of what the call premium is?

Group of answer choices

The amount above the face value an investor must pay to purchase the bond.

The additional amount above the face value that the company must pay to repay the bond early.

The additional amount above the market price that a company must pay to repay the bond early.

The amount above the market price that an investor must pay to purchase the bond.

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Question 7

5pts

Which of the following is the best definition of the coupon yield on a bond?

Group of answer choices

The percentage of the face amount paid each period in cash.

Next year's coupon payment divided by the current market price.

(The coupon payment plus the change in the price of the bond from the previous year) divided by the current price of the bond.

(The change in the price of the bond from the previous year dividend by the current price of the bond) divided by the current price of the bond.

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Question 8

5pts

What is the current yield of a 30-year bond with an 8.00% coupon rate, a face value of $1,000, annual payments which is selling at $1,142.86?

Group of answer choices

6.86%

7.00%

7.54%

8.00%