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Question;80. The bonds issued by Stainless Tubs bear a 6;percent coupon, payable semiannually. The bonds mature in 11 years and have a;\$1,000 face value. Currently, the bonds sell for \$989. What is the yield to;maturity?;A. 5.87 percent;B. 5.92 percent;C. 6.08 percent;D. 6.14 percent;E. 6.20 percent;81. Greenbrier Industrial Products' bonds have a 7.60;percent coupon and pay interest annually. The face value is \$1,000 and the;current market price is \$1,062.50 per bond. The bonds mature in 16 years. What;is the yield to maturity?;A. 6.94 percent;B. 7.22 percent;C. 7.46 percent;D. 7.71 percent;E. 7.80 percent;82. Collingwood Homes has a bond issue outstanding;that pays an 8.5 percent coupon and matures in 18.5 years. The bonds have a par;value of \$1,000 and a market price of \$964.20. Interest is paid semiannually.;What is the yield to maturity?;A. 8.36 percent;B. 8.42 percent;C. 8.61 percent;D. 8.74 percent;E. 8.90 percent;83. Oil Well Supply offers 7.5 percent coupon bonds;with semiannual payments and a yield to maturity of 7.68 percent. The bonds;mature in 6 years. What is the market price per bond if the face value is;\$1,000?;A. \$989.70;B. \$991.47;C. \$996.48;D. \$1,002.60;E. \$1,013.48;84. Roadside Markets has a 6.75 percent coupon bond;outstanding that matures in 10.5 years. The bond pays interest semiannually.;What is the market price per bond if the face value is \$1,000 and the yield to;maturity is 6.69 percent?;A. \$999.80;B. \$999.85;C. \$1,003.42;D. \$1,004.47;E. \$1,007.52;85. Grand Adventure Properties offers a 9.5 percent;coupon bond with annual payments. The yield to maturity is 11.2 percent and the;maturity date is 11 years from today. What is the market price of this bond if;the face value is \$1,000?;A. \$895.43;B. \$896.67;C. \$941.20;D. \$946.18;E. \$953.30;86. Redesigned Computers has 5.25 percent coupon bonds;outstanding with a current market price of \$546.19. The yield to maturity is;16.28 percent and the face value is \$1,000. Interest is paid semiannually. How;many years is it until these bonds mature?;A. 6.64 years;B. 7.08 years;C. 12.41 years;D. 14.16 years;E. 28.32 years;87. Global Communications has a 7 percent, semiannual;coupon bond outstanding with a current market price of \$1,023.46. The bond has;a par value of \$1,000 and a yield to maturity of 6.72 percent. How many years;is it until this bond matures?;A. 12.26 years;B. 12.53 years;C. 18.49 years;D. 24.37 years;E. 25.05 years;88. You are purchasing a 25-year, zero-coupon bond. The yield to maturity;is 8.68 percent and the face value is \$1,000. What is the current market;price?;A. \$106.67;B. \$108.18;C. \$119.52;D. \$121.50;E. \$128.47;89. Today, you want to sell a \$1,000 face value zero;coupon bond you currently own. The bond matures in 4.5 years. How much will you;receive for your bond if the market yield to maturity is currently 5.33;percent? Ignore any accrued interest.;A. \$696.60;B. \$698.09;C. \$741.08;D. \$756.14;E. \$789.22;90. The zero coupon bonds of D&L Movers have a;market price of \$319.24, a face value of \$1,000, and a yield to maturity of 9.17;percent. How many years is it until these bonds mature?;A. 11.92 years;B. 12.28 years;C. 12.73 years;D. 13.01 years;E. 13.47 years;91. A 16-year, 4.5 percent coupon bond pays interest annually. The;bond has a face value of \$1,000. What is the percentage change in the price of;this bond if the market yield to maturity rises to 5.7 percent from the current;rate of 5.5 percent?;A. 2.14 percent decrease;B. 1.97 percent decrease;C. 0.21 percent increase;D. 1.97 percent increase;E. 2.14 percent increase;92. The;Corner Grocer has a 7-year, 6 percent annual coupon bond outstanding with a;\$1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of;the following statements is correct if the market yield suddenly increases to;6.5 percent?;A. The bond price will increase by \$57.14.;B. The bond price will increase by 5.29 percent.;C. The bond price will decrease by \$53.62.;D. The bond price will decrease by 5.43 percent.;E. The bond price will decrease by 5.36 percent.;93. Blackwell bonds have a face value of \$1,000 and;are currently quoted at 98.4. The bonds have a 5 percent coupon rate. What is;the current yield on these bonds?;A. 4.67 percent;B. 4.78 percent;C. 5.08 percent;D. 5.33 percent;E. 5.54 percent;94. The outstanding;bonds of The River Front Ferry carry a 6.5 percent coupon. The bonds have a;face value of \$1,000 and are currently quoted at 101.6. What is the current;yield on these bonds?;A. 1.60 percent;B. 2.37 percent;C. 6.40 percent;D. 6.49 percent;E. 6.88 percent;95. The 7 percent, semi-annual coupon bonds offered by;House Renovators are callable in 2 years at \$1,054. What is the amount of the;call premium on a \$1,000 par value bond?;A. \$52;B. \$54;C. \$72;D. \$84;E. \$89;96. A corporate bond was quoted yesterday at 102.16 while today's;quote is 102.19. What is the change in the value of a bond that has a face;value of \$6,000?;A. \$0.30;B. \$1.80;C. \$3.00;D. \$18.00;E. \$180.00;97. A;10-year, 4.5 percent, semiannual coupon bond issued by Tyler Rentals has a;\$1,000 face value. The bond is currently quoted at 98.7. What is the clean;price of this bond if the next interest payment will occur 2 months from;today?;A. \$987.00;B. \$994.50;C. \$1,002.00;D. \$1,011.25;E. \$1,022.50;98. A;Treasury bond is quoted at a price of 105:15. What is the market price of this;bond if the face value is \$5,000?;A. \$5,005.15;B. \$5,105.15;C. \$5,257.50;D. \$5,273.44;E. \$5,515.0099. A Treasury bond is quoted at a price of 101:14 with a;current yield of 7.236 percent. What is the coupon rate?;A. 7.20 percent;B. 7.28 percent;C. 7.30 percent;D. 7.34 percent;E. 7.39 percent;100. A;corporate bond is quoted at a price of 103.16 and carries a 6.50 percent;coupon. The bond pays interest semiannually. What is the current yield on one;of these bonds?;A. 6.24 percent;B. 6.30 percent;C. 6.36 percent;D. 6.62 percent;E. 6.66 percent;101. A;Treasury bond is quoted at a price of 106:23 with a 3.50 percent coupon. The;bond pays interest semiannually. What is the current yield on one of these;bonds?;A. 3.06 percent;B. 3.19 percent;C. 3.28 percent;D. 3.33 percent;E. 3.38 percent;102. A;Treasury bond is quoted as 99:11 asked and 99:09 bid. What is the bid-ask;spread in dollars on a \$5,000 face value bond?;A. \$0.03;B. \$0.63;C. \$1.00;D. \$3.13;E. \$6.25;103. The;semiannual, 8-year bonds of Alto Music are selling at par and have an effective;annual yield of 8.6285 percent. What is the amount of each interest payment if;the face value of the bonds is \$1,000?;A. \$41.50;B. \$42.25;C. \$43.15;D. \$85.00;E. \$86.29;104. A bond;that pays interest annually yielded 7.47 percent last year. The inflation rate;for the same period was 6.10 percent. What was the actual real rate of return;on this bond for last year?;A. 1.19 percent;B. 1.25 percent;C. 1.29 percent;D. 1.36 percent;E. 1.41 percent;105. Getty Markets has bonds outstanding that pay a 5;percent semiannual coupon, have a 5.28 percent yield to maturity, and a face;value of \$1,000. The current rate of inflation is 4.1 percent. What is the real;rate of return on these bonds?;A. 0.86 percent;B. 0.90 percent;C. 1.04 percent;D. 1.13 percent;E. 1.19 p

Paper#50987 | Written in 18-Jul-2015

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