Exam 10: Bond Prices and Yields

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 percent,the current yield is percent,and the yield to maturity is percent.

(Multiple Choice)

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Question 41

You are considering two bonds.Both have semi-annual,8 percent coupons,$1,000 face values,and yields to maturity of 7.5 percent.Bond S matures in 4 years and Bond L matures in 8 years.What is the difference in the current prices of these bonds?

(Multiple Choice)

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Question 42

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

(Multiple Choice)

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Question 43

A $1,000 face value bond is selling for $1,016.36.The bond pays interest semiannually and has 3.5 years to maturity.The yield to maturity is 5.48 percent.The current yield is percent and the coupon rate is percent.

(Multiple Choice)

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Question 44

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

(Multiple Choice)

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Question 45

Two bonds have a coupon rate of 4.25 percent,semi-annual payments,face values of $1,000,and yields to maturity of 5.1 percent.Bond S matures in 4 years and bond L matures in 8 years.What is the difference in the current prices of these bonds?

(Multiple Choice)

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Question 46

For a premium bond,the:

(Multiple Choice)

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Question 47

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 48

Which one of the following will decrease the current yield of a bond?

(Multiple Choice)

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Question 49

A 6 percent,semiannual coupon bond has a yield to maturity of 7.4 percent and a Macaulay duration of 5.7.The bond has a modified duration of and will have a percentage increase in price in response to a 25 basis point decrease in the yield to maturity.

(Multiple Choice)

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Question 50

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 51

Periodically rebalancing a portfolio so that the duration continues to match the target date is called:

(Multiple Choice)

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Question 52

Dynamic immunization is primarily aimed at reducing which one of the following risks?

(Multiple Choice)

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Question 53

Castle's Furniture Outlet is issuing 20-year,8 percent 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 semi-annually.What is the yield to call?

(Multiple Choice)

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Question 54

A $1,000 par value 4.75 percent Treasury bond pays interest semiannually and matures in 10.5 years.What is the yield to maturity if the bond is currently quoted at a price of 110.5?

(Multiple Choice)

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Question 55

A dedicated portfolio is a bond portfolio created to:

(Multiple Choice)

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Question 56

Which of the following will increase if the coupon rate increases? I.face value II.market value III.yield-to-maturity IV.current yield

(Multiple Choice)

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Question 57

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 percent,the current yield is percent,and the yield to maturity is percent.

(Multiple Choice)

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Question 58

Which one of the following statements is correct concerning a callable bond that is currently selling below face value? Assume there is no risk of default.Also assume the issuer only calls bonds when they can be refinanced at a lower rate of interest.

(Multiple Choice)

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Question 59

The dirty price of a bond is the:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 100

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 percent,the current yield is percent,and the yield to maturity is percent.

You are considering two bonds.Both have semi-annual,8 percent coupons,$1,000 face values,and yields to maturity of 7.5 percent.Bond S matures in 4 years and Bond L matures in 8 years.What is the difference in the current prices of these bonds?

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

A $1,000 face value bond is selling for $1,016.36.The bond pays interest semiannually and has 3.5 years to maturity.The yield to maturity is 5.48 percent.The current yield is percent and the coupon rate is percent.

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

Two bonds have a coupon rate of 4.25 percent,semi-annual payments,face values of $1,000,and yields to maturity of 5.1 percent.Bond S matures in 4 years and bond L matures in 8 years.What is the difference in the current prices of these bonds?

For a premium bond,the:

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?

Which one of the following will decrease the current yield of a bond?

A 6 percent,semiannual coupon bond has a yield to maturity of 7.4 percent and a Macaulay duration of 5.7.The bond has a modified duration of and will have a percentage increase in price in response to a 25 basis point decrease in the yield to maturity.

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

Periodically rebalancing a portfolio so that the duration continues to match the target date is called:

Dynamic immunization is primarily aimed at reducing which one of the following risks?

Castle's Furniture Outlet is issuing 20-year,8 percent 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 semi-annually.What is the yield to call?

A $1,000 par value 4.75 percent Treasury bond pays interest semiannually and matures in 10.5 years.What is the yield to maturity if the bond is currently quoted at a price of 110.5?

A dedicated portfolio is a bond portfolio created to:

Which of the following will increase if the coupon rate increases? I.face value II.market value III.yield-to-maturity IV.current yield

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 percent,the current yield is percent,and the yield to maturity is percent.

Which one of the following statements is correct concerning a callable bond that is currently selling below face value? Assume there is no risk of default.Also assume the issuer only calls bonds when they can be refinanced at a lower rate of interest.

The dirty price of a bond is the:

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters

Exam 10: Bond Prices and Yields

You are considering two bonds.Both have semi-annual,8 percent coupons,$1,000 face values,and yields to maturity of 7.5 percent.Bond S matures in 4 years and Bond L matures in 8 years.What is the difference in the current prices of these bonds?

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

A $1,000 face value bond is selling for $1,016.36.The bond pays interest semiannually and has 3.5 years to maturity.The yield to maturity is 5.48 percent.The current yield is ________ percent and the coupon rate is ________ percent.

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

Two bonds have a coupon rate of 4.25 percent,semi-annual payments,face values of $1,000,and yields to maturity of 5.1 percent.Bond S matures in 4 years and bond L matures in 8 years.What is the difference in the current prices of these bonds?

For a premium bond,the:

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?

Which one of the following will decrease the current yield of a bond?

A 6 percent,semiannual coupon bond has a yield to maturity of 7.4 percent and a Macaulay duration of 5.7.The bond has a modified duration of ________ and will have a ________ percentage increase in price in response to a 25 basis point decrease in the yield to maturity.

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

Periodically rebalancing a portfolio so that the duration continues to match the target date is called:

Dynamic immunization is primarily aimed at reducing which one of the following risks?

Castle's Furniture Outlet is issuing 20-year,8 percent 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 semi-annually.What is the yield to call?

A $1,000 par value 4.75 percent Treasury bond pays interest semiannually and matures in 10.5 years.What is the yield to maturity if the bond is currently quoted at a price of 110.5?

A dedicated portfolio is a bond portfolio created to:

Which of the following will increase if the coupon rate increases? I.face value II.market value III.yield-to-maturity IV.current yield

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 ________ percent,the current yield is ________ percent,and the yield to maturity is ________ percent.

Which one of the following statements is correct concerning a callable bond that is currently selling below face value? Assume there is no risk of default.Also assume the issuer only calls bonds when they can be refinanced at a lower rate of interest.

The dirty price of a bond is the:

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters

A $1,000 face value bond is selling for $1,016.36.The bond pays interest semiannually and has 3.5 years to maturity.The yield to maturity is 5.48 percent.The current yield is percent and the coupon rate is percent.

A 6 percent,semiannual coupon bond has a yield to maturity of 7.4 percent and a Macaulay duration of 5.7.The bond has a modified duration of and will have a percentage increase in price in response to a 25 basis point decrease in the yield to maturity.

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 percent,the current yield is percent,and the yield to maturity is percent.