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finance data bank




Question;[i]. An 8 percent annual;coupon, noncallable bond has ten years until it matures and a yield to maturity;of 9.1 percent. What should be the price;of a 10-year noncallable bond of equal risk which pays an 8 percent semiannual;coupon? Assume both bonds have a par value of $1,000.;a. $ 898.64;b. $ 736.86;c. $ 854.27;d. $ 941.09;e. $ 964.23;[ii]. Kennedy Gas Works has bonds;which mature in 10 years, and have a face value of $1,000. The bonds have a 10 percent quarterly coupon;(i.e., the nominal coupon rate is 10 percent).;The bonds may be called in five years.;The bonds have a nominal yield to maturity of 8 percent and a yield to;call of 7.5 percent. What is the call;price on the bonds?;a. $ 379.27;b. $1,025.00;c. $1,048.34;d. $1,036.77;e. $1,136.78;[iii]. Hood Corporation recently;issued 20-year bonds. The bonds have a coupon rate of 8 percent and pay;interest semiannually. Also, the bonds;are callable in 6 years at a call price equal to 115 percent of par value. The;par value of the bonds is $1,000. If the;yield to maturity is 7 percent, what is the yield to call?;a. 8.33%;b. 7.75%;c. 9.89%;d. 10.00%;e. 7.00%;[iv]. A 12-year bond with a 10;percent semiannual coupon and a $1,000 par value has a nominal yield to;maturity of 9 percent. The bond can be;called in five years at a call price of $1,050.;What is the bond's nominal yield to call?;a. 4.50%;b. 8.25%;c. 8.88%;d. 8.98%;e. 9.00%;[v]. A corporate bond with an;11 percent semiannual coupon has a yield to maturity of 9 percent. The bond matures in 20 years but is callable;in ten years. The maturity value is $1,000.;The call price is $1,055. What is the bond's yield to call?;a. 8.43%;b. 8.50%;c. 8.58%;d. 8.65%;e. 9.00%;[vi]. A corporate bond which;matures in 12 years, pays a 9 percent annual coupon, has a face value of;$1,000, and a yield to maturity of 7.5 percent.;The bond can first be called four years from now. The call price is $1,050. What is the bond?s yield to call?;a. 6.73%;b. 7.10%;c. 7.50%;d. 11.86%;e. 13.45%;[vii]. A bond that matures in 11;years has an annual coupon rate of 8 percent with interest paid annually. The bond?s face value is $1,000 and its yield;to maturity is 7.5 percent. The bond can;be called 3 years from now at a price of $1,060. What is the bond?s nominal yield to call?;a. 9.82%;b. 8.41%;c. 8.54%;d. 8.38%;e. 7.86%;[viii]. McGriff Motors has bonds;outstanding which will mature in 12 years.;The bonds pay a 12 percent semiannual coupon and have a face value of;$1,000 (i.e., the bonds pay a $60 coupon every six months). The bonds currently have a yield to maturity;of 10 percent. The bonds are callable in;8 years and have a call price of $1,050.;What are the bonds' yield to call?;a. 8.89%;b. 9.89%;c. 9.94%;d. 10.00%;e. 12.00%;[ix]. A company is issuing $1,000;bonds at par value. The coupon rate (and;yield to maturity) on the bonds is 8 percent (with annual payments) and the bonds;will mature in 10 years. The bonds can;be called at a call premium of 5 percent above face value after 3 years. What is the after-tax yield to call for an investor with a 31 percent;tax rate?;a. 5.52%;b. 5.90%;c. 6.60%;d. 7.07%;e. 9.52%;[x]. A 15-year bond with a 10;percent semiannual coupon has a par value of $1,000. The bond may be called after 10 years at a;call price of $1,050. The bond has a;nominal yield to call of 6.5 percent.;What is the bond's yield to maturity, stated on a nominal, or annual;basis?;a. 5.97%;b. 6.30%;c. 6.75%;d. 6.95%;e. 7.10%;[xi]. You have just been offered;a $1,000 par value bond for $847.88. The;coupon rate is 8 percent, payable annually, and annual interest rates on new;issues of the same degree of risk are 10 percent. You want to know how many more interest pay?ments;you will receive, but the party selling the bond cannot remember. Can you determine how many interest payments;remain?;a. 14;b. 15;c. 12;d. 20;e. 10...


Paper#50971 | Written in 18-Jul-2015

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