Exam 14: Bond Prices and Yields

A convertible bond has a par value of $1,000 and a current market price of $850.The current price of the issuing firm's stock is $29 and the conversion ratio is 30 shares.The bond's market conversion value is

At issue, coupon bonds typically sell

The bond market

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

A coupon bond pays annual interest, has a par value of $1,000, matures in four years, has a coupon rate of 8.25%, and has a yield to maturity of 8.64%.The current yield on this bond is

A convertible bond has a par value of $1,000 and a current market value of $150.The current price of the issuing firm's stock is $65 and the conversion ratio is 15 shares.The bond's conversion premium is

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.

A CDS is a

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 12%.

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 12-year zero-coupon bond with a yield to maturity of 9% 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 10% at the time you sell.

Consider a $1,000 par value 20-year zero-coupon bond issued at a yield to maturity of 10%.If you buy that bond when it is issued and continue to hold the bond as yields decline to 9%, the imputed interest income for the first year of that bond is

One year ago, you purchased a newly issued TIPS bond that has a 6% coupon rate, five years to maturity, and a par value of $1,000.The average inflation rate over the year was 4.2%.What is the amount of the coupon payment you will receive, and what is the current face value of the bond

A bond with a 12% coupon, 10 years to maturity and selling at 88:00 has a yield to maturity 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

Ceteris paribus, the price and yield on a bond are

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

If a 7% coupon bond is trading for $975.00, it has a current yield of

To earn a high rating from the bond rating agencies, a firm should have

A coupon bond that pays interest semi-annually has a par value of $1,000, matures in six years, and has a yield to maturity of 9%.The intrinsic value of the bond today will be __________ if the coupon rate is 9%.