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Finance Assignment

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Question;Question 1The rate required in the market on a bond is called the:??yield to maturity?risk premiumcurrent yieldcall yieldliquidity premium???1 pointsQuestion 2ABC has issued a bond with the following characteristics:?Par: $1,000, Time to maturity: 12 years, Coupon rate: 9%,?Assume semi-annual coupon payments. Calculate the price of this bond if the YTM is 7.11%?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????1 pointsQuestion 3The 11.82 percent, $1,000 face value bonds of Tim McKnight, Inc., are currently selling at $930.02. What is the current yield??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????1 pointsQuestion 4ABC's bonds have a 9.5 percent coupon and pay interest semi-annually. Currently, the bonds are quoted at 106.315 percent of par value. The bonds mature in 8 years. What is the yield to maturity???????1 pointsQuestion 5Stealers Wheel Software has 5.97% coupon bonds on the market with nine years to maturity. The bonds make semi-annual payments and currently sell for 95.23% of par. What is the current yield??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????1 pointsQuestion 6ABC Inc., has $1,000 face value bonds outstanding. These bonds mature in 3 years, and have a 6.5 percent coupon. The current price is quoted at 98.59 percent of par value. Assume semi-annual payments. What is the yield to maturity??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????1 pointsQuestion 7Assume that you wish to purchase a 18-year bond that has a maturity value of $1,000 and a coupon interest rate of 5%, paid semiannually. If you require a 4.42% rate of return on this investment (YTM), what is the maximum price that you should be willing to pay for this bond? That is, solve for PV.?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????1 pointsQuestion 8The principal amount of a bond that is repaid at the end of term is called the par value or the:??coupon rateback-end amountcoupondiscount amountface value???1 pointsQuestion 9A discount bond has a yield to maturity that:??exceeds the coupon rate.?equals zero.?is equal to the current yield.?is less than the coupon rate.?equals the bond's coupon rate.????1 pointsQuestion 10A firm's bonds have maturity of 10 years with a $1000 face value, an 8% semi-annual coupon, are callable in 5 years, at $1,050, and currently sells at a price of $1,100. What is the yield to call (YTC)??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????1 pointsQuestion 11ABC Corp. issued 15-year bonds 2 years ago at a coupon rate of 10.6%. The bonds make semi-annual payments. If these bonds currently sell for 97% of par value, what is the YTM??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????1 pointsQuestion 12The yield to maturity on a Marshall Co. premium bond is 7.6 percent. This is the:??nominal rate.?effective rate.?real rate.?current yield.?coupon rate.????1 pointsQuestion 13ABC's Inc.'s bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????1 pointsQuestion 14ABC has issued a bond with the following characteristics:?Par: $1,000, Time to maturity: 17 years, Coupon rate: 5%,?Assume annual coupon payments. Calculate the price of this bond if the YTM is 11.94%?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????1 pointsQuestion 15A bond which sells for less than the face value is called a:??perpetuity.?debenture.?discount bond.?premium bond.?par value bond.????1 pointsQuestion 16BCD?s $1,000 par value bonds currently sell for $798.40. The coupon rate is 10%, paid semi-annually. If the bonds have 5 years to maturity, what is the yield to maturity??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????1 pointsQuestion 17ABC has issued a bond with the following characteristics:?Par: $1,000, Time to maturity: 17 years, Coupon rate: 5%,?Assume semi-annual coupon payments. Calculate the price of this bond if the YTM is 11.78%?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????1 pointsQuestion 18You paid $908 for a corporate bond that has a 11.77% coupon rate. What is the current yield??Hint: if nothing is mentioned, then assume par value = $1,000?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????1 pointsQuestion 19The 8 percent coupon bonds of the Peterson Co. are selling for 98 percent of par value. The bonds mature in 5 years and pay interest semi-annually. These bonds have a yield to maturity of _____ percent.??????1 pointsQuestion 20ABC wants to issue 20-year, zero coupon bonds that yield 9.39 percent. What price should they charge for these bonds if they have a par value of $1,000? That is, solve for PV. Assume annual compounding.?Hint: zero coupon bonds means PMT = 0?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????1 pointsQuestion 21The 11.51 percent coupon bonds of the Peterson Co. are selling for $815.99. The bonds mature in 5 years and pay interest semi-annually. These bonds have current yield of _____ percent.?Enter your answer in percentages rounded off to two decimal points.??????1 pointsQuestion 22A premium bond is a bond that:??has a par value which exceeds the face value.?has a market price which exceeds the face value.?is selling for less than par value.?has a face value in excess of $1,000.?is callable within 12 months or less.????

 

Paper#49816 | Written in 18-Jul-2015

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