Question 1

A CDO is a

Accepted Answer

A) Command Duty Officer 
B) collateralized debt obligation 
C) commercial debt originator 
D) collateralized debenture originator 
E) common debt officer 
A) Command Duty Officer 
B) collateralized debt obligation 
C) commercial debt originator 
D) collateralized debenture originator 
E) common debt officer

Question 2

A zero-coupon bond has a yield to maturity of 11% and a par value of $1,000.If the bond matures in 27 years,the bond should sell for a price of _______ today.

Accepted Answer

A) $59.74 
B) $501.87 
C) $513.16 
D) $483.49 
E) none of the above 
A) $59.74 
B) $501.87 
C) $513.16 
D) $483.49 
E) none of the above

Question 3

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

Accepted Answer

A) 6.5 
B) 6.3 
C) 6.1 
D) 6.0 
E) 6.6 
A) 6.5 
B) 6.3 
C) 6.1 
D) 6.0 
E) 6.6

Question 4

SIVs are

Accepted Answer

A) structured investment vehicles 
B) structured interest rate vehicles 
C) semi-annual investment vehicles 
D) riskless investments 
E) structured insured variable rate instruments 
A) structured investment vehicles 
B) structured interest rate vehicles 
C) semi-annual investment vehicles 
D) riskless investments 
E) structured insured variable rate instruments

Question 5

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 _________.

Accepted Answer

A) $491.80 
B) $800.00 
C) $983.61 
D) $1,661.20 
E) none of the above 
A) $491.80 
B) $800.00 
C) $983.61 
D) $1,661.20 
E) none of the above

Question 6

A coupon bond is a bond that _________.

Accepted Answer

A) pays interest on a regular basis (typically every six months) 
B) does not pay interest on a regular basis but pays a lump sum at maturity 
C) can always be converted into a specific number of shares of common stock in the issuing company 
D) always sells at par 
E) none of the above 
A) pays interest on a regular basis (typically every six months) 
B) does not pay interest on a regular basis but pays a lump sum at maturity 
C) can always be converted into a specific number of shares of common stock in the issuing company 
D) always sells at par 
E) none of the above

Question 7

The bond indenture includes

Accepted Answer

A) the coupon rate of the bond. 
B) the par value of the bond. 
C) the maturity date of the bond. 
D) all of the above. 
E) none of the above. 
A) the coupon rate of the bond. 
B) the par value of the bond. 
C) the maturity date of the bond. 
D) all of the above. 
E) none of the above.

Question 8

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 ________.

Accepted Answer

A) 5.1% 
B) 8.8% 
C) 10.8% 
D) 13.4% 
E) none of the above 
A) 5.1% 
B) 8.8% 
C) 10.8% 
D) 13.4% 
E) none of the above

Question 9

Most corporate bonds are traded

Accepted Answer

A) on a formal exchange operated by the New York Stock Exchange. 
B) by the issuing corporation. 
C) over the counter by bond dealers linked by a computer quotation system. 
D) on a formal exchange operated by the American Stock Exchange. 
E) on a formal exchange operated by the Philadelphia Stock Exchange. 
A) on a formal exchange operated by the New York Stock Exchange. 
B) by the issuing corporation. 
C) over the counter by bond dealers linked by a computer quotation system. 
D) on a formal exchange operated by the American Stock Exchange. 
E) on a formal exchange operated by the Philadelphia Stock Exchange.

A CDO is a

A zero-coupon bond has a yield to maturity of 11% and a par value of $1,000.If the bond matures in 27 years,the bond should sell for a price of _______ today.

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

SIVs are

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 _________.

A coupon bond is a bond that _________.

The bond indenture includes

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 ________.

Most corporate bonds are traded

The Investment Environment

Asset Classes and Financial Instruments

How Securities are Traded

Mutual Funds and Other Investment Companies

Introduction to Risk,return,and the Historical Record

Risk Aversion and Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

The Term Structure of Interest Rates

Managing Bond Portfolios

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, swaps, and Risk Management

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the CFA Institute Appendices

Filters

Exam 14: Bond Prices and Yields

A CDO is a

A zero-coupon bond has a yield to maturity of 11% and a par value of $1,000.If the bond matures in 27 years,the bond should sell for a price of _______ today.

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

SIVs are

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 _________.

A coupon bond is a bond that _________.

The bond indenture includes

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 ________.

Most corporate bonds are traded

The Investment Environment

Asset Classes and Financial Instruments

How Securities are Traded

Mutual Funds and Other Investment Companies

Introduction to Risk,return,and the Historical Record

Risk Aversion and Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

The Term Structure of Interest Rates

Managing Bond Portfolios

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, swaps, and Risk Management

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the CFA Institute Appendices

Filters