Exam 14: Bond Prices and Yields

A coupon bond that pays interest semi-annually has a par value of $1,000, matures in five years, and has a yield to maturity of 10%.The intrinsic value of the bond today will be __________ if the coupon rate is 8%.

You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at the time of purchase.The coupon interest rate is 10%, and par value is $1,000.At the time you purchased the bond, the yield to maturity was 8%.If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7%, your annual total rate of return on holding the bond for that year would have been

A coupon bond that pays interest annually has a par value of $1,000, matures in six years, and has a yield to maturity of 11%.The intrinsic value of the bond today will be ______ if the coupon rate is 7.5%.

You purchased an annual interest coupon bond one year ago that now has 18 years remaining until maturity.The coupon rate of interest was 11%, and par value was $1,000.At the time you purchased the bond, the yield to maturity was 10%.The amount you paid for this bond one year ago was

A 12% coupon bond with semi-annual payments is callable in five years.The call price is $1,120.If the bond is selling today for $1,110, what is the yield to call?

Debt securities are often called fixed-income securities because

A coupon bond is a bond that

If a 7.5% coupon bond that pays interest every 182 days paid interest 62 days ago, the accrued interest would be

Consider the following $1,000-par-value zero-coupon bonds: The yield to maturity on bond C is

If an 8% coupon bond is trading for $1,025.00, it has a current yield of

A Treasury bill with a par value of $100,000 due two months from now is selling today for $98,039 with an effective annual yield of

A Treasury bill with a par value of $100,000 due three months from now is selling today for $97,087 with an effective annual yield of

A bond with a 12% coupon, 10 years to maturity, and selling at $88.00 has a yield to maturity of

Convertible bonds

A Treasury bond due in one year has a yield of 4.6%; a Treasury bond due in five years has a yield of 5.6%.A bond issued by Lucent Technologies due in five years has a yield of 8.9%; a bond issued by Exxon due in one year has a yield of 6.2%.The default risk premiums on the bonds issued by Exxon and Lucent Technologies, respectively, are

You have just purchased a 10-year zero-coupon bond with a yield to maturity of 10% and a par value of $1,000.What would your rate of return at the end of the year be if you sell the bond? Assume the yield to maturity on the bond is 11% at the time you sell.

If a 7.75% coupon bond is trading for $1,019.00, it has a current yield of

A Treasury bond due in one year has a yield of 6.2%; a Treasury bond due in five years has a yield of 6.7%.A bond issued by Xerox due in five years has a yield of 7.9%; a bond issued by Exxon due in one year has a yield of 7.2%.The default risk premiums on the bonds issued by Exxon and Xerox, respectively, are

A zero-coupon bond has a yield to maturity of 11% and a par value of $1,000.If the bond matures in 27 years, the bond should sell for a price of _______ today.

A coupon bond that pays interest annually is selling at a par value of $1,000, matures in five years, and has a coupon rate of 9%.The yield to maturity on this bond is