The zero coupon bonds of Mark Enterprises have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.87 percent based on semiannual compounding. How many years is it until this bond matures?

11.08 years

10.49 years

13.77 years

12.64 years

15.42 years

The nominal rate of return on a bond is 7.28 percent while the real rate is 3.09 percent. What is the rate of inflation?

4.06%

4.28%

4.09%

4.13%

4.17%

Allisons wants to raise $12.4 million to expand its business. To accomplish this, it plans to sell 25-year, $1,000 face value, zero-coupon bonds. The bonds will be priced to yield 6.5 percent, with semiannual compounding. What is the minimum number of bonds Allisons must sell to raise the $12.4 million it needs?

59,864

52,667

61,366

60,107

60,435

Stu wants to earn a real return of 3.4 percent on any bond he acquires. The inflation rate is 2.8 percent. He has determined that a particular bond he is considering should have an interest rate risk premium of .27 percent, a liquidity premium of .08 percent, and a taxability premium of 1.69 percent. What nominal rate of return is Stu demanding from this particular bond?

8.24%

7.19%

8.40%

7.38%

8.74%

Otto Enterprises has a 15-year bond issue outstanding with a coupon of 8 percent. The bond is currently priced at $923.60 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity?

8.67%

9.93%

9.16%

8.93%

8.45%