Exam 14: Bond Prices and Yields

An 8% coupon U.S.Treasury note pays interest on May 30 and November 30 and is traded for settlement on August 15.The accrued interest on the $100,000 face value of this note is

SIVs are

The ______ is a measure of the average rate of return an investor will earn if the investor buys the bond now and holds until maturity.

One year ago, you purchased a newly issued TIPS bond that has a 5% coupon rate, five years to maturity, and a par value of $1,000.The average inflation rate over the year was 3.2%.What is the amount of the coupon payment you will receive and what is the current face value of the bond

A 9% coupon bond with an ask price of 100:00 pays interest every 182 days.If the bond paid interest 112 days ago, the invoice price of the bond would be

A coupon bond is reported as having an ask price of 108% of the $1,000 par value in the Wall Street Journal.If the last interest payment was made one month ago and the coupon rate is 9%, the invoice price of the bond will be

Swingin' Soiree, Inc.is a firm that has its main office on the Right Bank in Paris.The firm just issued bonds with a final payment amount that depends on whether the Seine River floods.This type of bond is known as

The current yield on a bond is equal to

Bond analysts might be more interested in a bond's yield to call if

A 7.5% coupon bond with an ask price of 100:00 pays interest every 182 days.If the bond paid interest 62 days ago, the invoice price of the bond would be

A 7% coupon bond with an ask price of 100:00 pays interest every 182 days.If the bond paid interest 32 days ago, the invoice price of the bond would be

A convertible bond has a par value of $1,000 and a current market price of $975.The current price of the issuing firm's stock is $42 and the conversion ratio is 22 shares.The bond's market conversion value is

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

You purchased a zero-coupon bond that has a face value of $1,000, five years to maturity, and a yield to maturity of 7.3%.It is one year later and similar bonds are offering a yield to maturity of 8.1%.You will sell the bond now.You have a tax rate of 40% on regular income and 15% on capital gains.Calculate the following for this bond. • The purchase price of the bond • The current price of the bond • The imputed interest income • The capital gain (or loss) on the bond • The before-tax rate of return on this investment • The after-tax rate of return on this investment

If a 6% coupon bond is trading for $950.00, it has a current yield of

Consider two bonds, A and B.Both bonds presently are selling at their par value of $1,000.Each pays interest of $120 annually.Bond A will mature in five years, while bond B will mature in six years.If the yields to maturity on the two bonds change from 12% to 10%,

The yield to maturity of a 20-year zero-coupon bond that is selling for $372.50 with a value at maturity of $1,000 is

A ___________ bond is a bond where the bondholder has the right to cash in the bond before maturity at a specified price after a specific date.

If a 9% coupon bond that pays interest every 182 days paid interest 112 days ago, the accrued interest would be

A convertible bond has a par value of $1,000 and a current market price of $1,105.The current price of the issuing firm's stock is $20 and the conversion ratio is 35 shares.The bond's market conversion value is