Exam 10: Bond Prices and Yields

A bond has a par value of $1,000 and a coupon rate of 3.5%. If you own 10 of these bonds, what is the dollar amount of each semiannual interest payment you will receive?

(Multiple Choice)

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Question 21

A bond has a Macaulay duration of 6.25 years. What will be the percentage change in the bond price if the yield to maturity increases from 6% to 6.4%?

(Multiple Choice)

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Question 22

A bond has a dollar value of an 01 of .0748. What is the yield value of a 32nd?

(Multiple Choice)

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Question 23

For a premium bond, the:

(Multiple Choice)

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Question 24

Which one of the following measures a bond's sensitivity to changes in market interest rates?

(Multiple Choice)

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Question 25

A bond has 7 years to maturity, an 8% coupon, a $1,000 face value, and pays interest semiannually. What is the bond's current price if the yield to maturity is 7.32%?

(Multiple Choice)

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Question 26

If all other variables remain constant, then an increase in the coupon rate will cause which of the following to also increase? I. face value II. market value III. yield to maturity IV. current yield

(Multiple Choice)

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Question 27

Phil owns a 7%, semiannual coupon bond that has a face value of $1,000 and matures in 16 years. The bond has a current yield to maturity of 7.1%. What will the percentage change in the price of his bond be if interest rates decrease by 50 basis points?

(Multiple Choice)

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Question 28

The yield value of a 32nd is the change needed in which one of the following to cause a bond's price to change by 1/32nd?

(Multiple Choice)

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Question 29

Which one of the following must be equal for two bonds if they are to have similar changes in their prices given a relatively small change in bond yields?

(Multiple Choice)

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Question 30

Alex purchased a $1,000 par value bond one year ago at a price of $1,016. At the time of purchase, the bond had 12 years to maturity and a 5%, semiannual coupon. Today, the bond has a yield to maturity of 5.25%. What is his realized yield as of today?

(Multiple Choice)

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Question 31

The outstanding bonds of Alpha Extracts have a yield to maturity of 5.2% and a modified duration of 8.3. If the yield to maturity instantly decreased to 4.7%, the bond's price would increase/decrease by ________%.

(Multiple Choice)

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Question 32

The outstanding bonds of International Plastics mature in 6 years and pay semiannual interest payments of $33.50 on a $1,000 face value bond. The bonds are currently selling for $1,008.64. The coupon rate is %, the current yield is %, and the yield to maturity is %.

(Multiple Choice)

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Question 33

A dedicated portfolio is a bond portfolio created to:

(Multiple Choice)

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Question 34

A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a 6.5% coupon. The bond currently sells for $1,025. What is the yield to maturity?

(Multiple Choice)

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Question 35

How does the size of the change in a bond's price react in response to a given change in the yield to maturity as the time to maturity increases?

(Multiple Choice)

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Question 36

Blue Water Homes has 8% bonds outstanding that mature in 13 years. The bonds pay interest semiannually. These bonds have a par value of $1,000 and are callable in 2 years at a premium of $75. What is the yield to call if the current price is equal to 103.25% of par?

(Multiple Choice)

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Question 37

The Seaside Inn has bonds outstanding with a par value of $1,000 each and a 4.30% coupon. The bonds mature in 7.5 years and pay interest semiannually. What is the current value of each of these bonds if the yield to maturity is 5.0%?

(Multiple Choice)

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Question 38

Ferris Metals has bonds outstanding, which it is calling today under the make-whole call provision. The bonds mature in 7 years, have a 9% coupon, pay interest semiannually, and have a par value of $1,000. What is today's call price given that the applicable discount rate is 7.05%?

(Multiple Choice)

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Question 39

Davidson Industrial bonds have a current market price of $992 and a 5% coupon. The bonds pay interest semiannually on March 1 and September 1. Assume today is January 1. How many months of accrued interest are included in the dirty price of these bonds?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 104

Exam 10: Bond Prices and Yields

A bond has a par value of $1,000 and a coupon rate of 3.5%. If you own 10 of these bonds, what is the dollar amount of each semiannual interest payment you will receive?

A bond has a Macaulay duration of 6.25 years. What will be the percentage change in the bond price if the yield to maturity increases from 6% to 6.4%?

A bond has a dollar value of an 01 of .0748. What is the yield value of a 32nd?

For a premium bond, the:

Which one of the following measures a bond's sensitivity to changes in market interest rates?

A bond has 7 years to maturity, an 8% coupon, a $1,000 face value, and pays interest semiannually. What is the bond's current price if the yield to maturity is 7.32%?

If all other variables remain constant, then an increase in the coupon rate will cause which of the following to also increase? I. face value II. market value III. yield to maturity IV. current yield

Phil owns a 7%, semiannual coupon bond that has a face value of $1,000 and matures in 16 years. The bond has a current yield to maturity of 7.1%. What will the percentage change in the price of his bond be if interest rates decrease by 50 basis points?

The yield value of a 32nd is the change needed in which one of the following to cause a bond's price to change by 1/32nd?

Which one of the following must be equal for two bonds if they are to have similar changes in their prices given a relatively small change in bond yields?

Alex purchased a $1,000 par value bond one year ago at a price of $1,016. At the time of purchase, the bond had 12 years to maturity and a 5%, semiannual coupon. Today, the bond has a yield to maturity of 5.25%. What is his realized yield as of today?

The outstanding bonds of Alpha Extracts have a yield to maturity of 5.2% and a modified duration of 8.3. If the yield to maturity instantly decreased to 4.7%, the bond's price would increase/decrease by ________%.

The outstanding bonds of International Plastics mature in 6 years and pay semiannual interest payments of $33.50 on a $1,000 face value bond. The bonds are currently selling for $1,008.64. The coupon rate is ________%, the current yield is ________%, and the yield to maturity is ________%.

A dedicated portfolio is a bond portfolio created to:

A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a 6.5% coupon. The bond currently sells for $1,025. What is the yield to maturity?

How does the size of the change in a bond's price react in response to a given change in the yield to maturity as the time to maturity increases?

Blue Water Homes has 8% bonds outstanding that mature in 13 years. The bonds pay interest semiannually. These bonds have a par value of $1,000 and are callable in 2 years at a premium of $75. What is the yield to call if the current price is equal to 103.25% of par?

The Seaside Inn has bonds outstanding with a par value of $1,000 each and a 4.30% coupon. The bonds mature in 7.5 years and pay interest semiannually. What is the current value of each of these bonds if the yield to maturity is 5.0%?

Ferris Metals has bonds outstanding, which it is calling today under the make-whole call provision. The bonds mature in 7 years, have a 9% coupon, pay interest semiannually, and have a par value of $1,000. What is today's call price given that the applicable discount rate is 7.05%?

Davidson Industrial bonds have a current market price of $992 and a 5% coupon. The bonds pay interest semiannually on March 1 and September 1. Assume today is January 1. How many months of accrued interest are included in the dirty price of these bonds?

A Brief History of Risk and Return

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Overview of Security Tips

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Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

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Return, Risk, and the Security Market Line

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The outstanding bonds of International Plastics mature in 6 years and pay semiannual interest payments of $33.50 on a $1,000 face value bond. The bonds are currently selling for $1,008.64. The coupon rate is %, the current yield is %, and the yield to maturity is %.