Exam 10: Bond Prices and Yields

You own a 6.5%, semiannual coupon bond that matures in 12 years. The par value is $1,000 and the current yield to maturity is 6.4%. What will the percentage change in the price of your bond be if the yield to maturity suddenly increases by 25 basis points?

(Multiple Choice)

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Question 41

Allen Roofing Materials has 6.5% bonds outstanding that are currently priced at $1,044 each. The bonds pay interest on December 1 and June 1. What is the dirty price of this bond if today's date is April 1? Assume a 360-day year.

(Multiple Choice)

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Question 42

A bond has a par value of $1,000, a market price of $1,130, and a coupon rate of 6.5%. What is the current yield?

(Multiple Choice)

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Question 43

Sam owns a 12-year, 7% bond with a make-whole call provision that is being called today. Interest is paid semiannually. What is the current call price if the applicable discount rate is 6.50% and the make-whole call provision applies?

(Multiple Choice)

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Question 44

Two bonds have a coupon rate of 4.25%, semiannual payments, face values of $1,000, and yields to maturity of 5.1%. Bond D matures in 4 years and bond J matures in 8 years. What is the difference in the current prices of these bonds?

(Multiple Choice)

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Question 45

A bond has a Macaulay duration of 4.0, a yield to maturity of 4.5%, a coupon rate of 5.0%, and semiannual interest payments. What is the bond's modified duration?

(Multiple Choice)

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Question 46

You want to buy a bond that has a quoted price of $923. The bond pays interest semiannually on April 1 and October 1. The coupon rate is 6%. What is the clean price of this bond if today's date is June 1? Assume a 360-day year.

(Multiple Choice)

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Question 47

Which one of the following statements is correct concerning premium bonds?

(Multiple Choice)

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Question 48

Which one of the following statements applies to a par value bond?

(Multiple Choice)

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Question 49

Castle's Furniture Outlet is issuing 20-year, 8% callable bonds. These bonds are callable in 5 years with a call premium of $40. The bonds are being issued at par and pay interest semiannually. What is the yield to call?

(Multiple Choice)

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Question 50

Which one of the following statements is correct?

(Multiple Choice)

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Question 51

A bond has a dollar value of an 01 of .0710. What is the yield value of a 32nd?

(Multiple Choice)

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Question 52

Two bonds have a coupon rate of 5.25%, semiannual payments, face values of $1,000, and yields to maturity of 6.1%. Bond B matures in 5 years and bond Q matures in 10 years. What is the difference in the current prices of these bonds?

(Multiple Choice)

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(74)

Question 53

A bond has a $1,000 par value, semiannual interest payments of $45, and a current market value of $1,045. The bonds mature in 11.5 years. The coupon rate is %, the current yield is %, and the yield to maturity is %.

(Multiple Choice)

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Question 54

Which one of the following is the risk that market rates may increase causing the price of a bond to decline?

(Multiple Choice)

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Question 55

Which one of the following prices is equal to the present value of a bond's future cash flows and is paid when a bond is redeemed prior to maturity?

(Multiple Choice)

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Question 56

The price of a bond, net of accrued interest, is referred to as the bond's:

(Multiple Choice)

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Question 57

The yield that a bond will earn given that it is bought back by the issuer at the earliest possible date is the:

(Multiple Choice)

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Question 58

John owns a bond that has a modified duration of 5.29 and a yield to maturity of 6.1%. If interest rates increase by 50 basis points, the bond's price will change by ________.

(Multiple Choice)

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(83)

Question 59

A bond pays interest semiannually on February 1 and August 1. Assume today is October 1. How many months of accrued interest are included in the clean price of this bond?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 104

Exam 10: Bond Prices and Yields

You own a 6.5%, semiannual coupon bond that matures in 12 years. The par value is $1,000 and the current yield to maturity is 6.4%. What will the percentage change in the price of your bond be if the yield to maturity suddenly increases by 25 basis points?

Allen Roofing Materials has 6.5% bonds outstanding that are currently priced at $1,044 each. The bonds pay interest on December 1 and June 1. What is the dirty price of this bond if today's date is April 1? Assume a 360-day year.

A bond has a par value of $1,000, a market price of $1,130, and a coupon rate of 6.5%. What is the current yield?

Sam owns a 12-year, 7% bond with a make-whole call provision that is being called today. Interest is paid semiannually. What is the current call price if the applicable discount rate is 6.50% and the make-whole call provision applies?

Two bonds have a coupon rate of 4.25%, semiannual payments, face values of $1,000, and yields to maturity of 5.1%. Bond D matures in 4 years and bond J matures in 8 years. What is the difference in the current prices of these bonds?

A bond has a Macaulay duration of 4.0, a yield to maturity of 4.5%, a coupon rate of 5.0%, and semiannual interest payments. What is the bond's modified duration?

You want to buy a bond that has a quoted price of $923. The bond pays interest semiannually on April 1 and October 1. The coupon rate is 6%. What is the clean price of this bond if today's date is June 1? Assume a 360-day year.

Which one of the following statements is correct concerning premium bonds?

Which one of the following statements applies to a par value bond?

Castle's Furniture Outlet is issuing 20-year, 8% callable bonds. These bonds are callable in 5 years with a call premium of $40. The bonds are being issued at par and pay interest semiannually. What is the yield to call?

Which one of the following statements is correct?

A bond has a dollar value of an 01 of .0710. What is the yield value of a 32nd?

Two bonds have a coupon rate of 5.25%, semiannual payments, face values of $1,000, and yields to maturity of 6.1%. Bond B matures in 5 years and bond Q matures in 10 years. What is the difference in the current prices of these bonds?

A bond has a $1,000 par value, semiannual interest payments of $45, and a current market value of $1,045. The bonds mature in 11.5 years. The coupon rate is ________%, the current yield is ________%, and the yield to maturity is ________%.

Which one of the following is the risk that market rates may increase causing the price of a bond to decline?

Which one of the following prices is equal to the present value of a bond's future cash flows and is paid when a bond is redeemed prior to maturity?

The price of a bond, net of accrued interest, is referred to as the bond's:

The yield that a bond will earn given that it is bought back by the issuer at the earliest possible date is the:

John owns a bond that has a modified duration of 5.29 and a yield to maturity of 6.1%. If interest rates increase by 50 basis points, the bond's price will change by ________.

A bond pays interest semiannually on February 1 and August 1. Assume today is October 1. How many months of accrued interest are included in the clean price of this bond?

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A bond has a $1,000 par value, semiannual interest payments of $45, and a current market value of $1,045. The bonds mature in 11.5 years. The coupon rate is %, the current yield is %, and the yield to maturity is %.