1 1. A coupon bond which pays interest of $100 annually, has a par value of $1,000, matures in 10 years, and is selling today at a $100 premium from par value. The current yield on this bond is __________. a. 10% b. 10.5% c. 8.48% d. 9.09% e. 11.00% 2. A Treasury yield curve plots Treasury interest rates relative to which one of the following? A. market rates B. the risk-free rate C. inflation D. comparable corporate bond rates E. maturity 3. Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for $1,382.01. At this price, the bonds yield 7.5 percent. What is the coupon rate? A. 8.00 percent B. 9.00 percent C. 10.50 percent D. 12.00 percent E. 8.50 percent 4. A bond that can be paid off early at the issuer's discretion is referred to as being which one of the following? A. unsecured B. collateralized C. senior D. zero coupon E. callable 5. An indenture is: A. a bond that is secured by the inventory held by the bond's issuer. B. the legal agreement between the bond issuer and the bondholders. C. the written record of all the holders of a bond issue. D. another name for a bond's coupon. E. a bond that is past its maturity date but has yet to be repaid.
Paper#2585 | Written in 18-Jul-2015Price : $25