Reading 68: Yield Measures, Spot Rates, and Forward Rates

答案和详解如下：

1．at is the bond-equivalent yield if the monthly yield is equal to 0.5 percent?

A)   6.08%.

B)   6.00%.

C)   6.05%.

D)   6.12%.

The correct answer was A)

The bond equivalent yield (BEY) is computed as follows:

BEY = 2 x [(1 + monthly yield)⁶ - 1] = 2 x [(1 + 0.005)⁶ - 1] = 6.08%

2．at is the bond-equivalent yield given if the monthly yield is equal to 0.7 percent?

A)   8.40%.

B)   8.58%.

C)   8.65%.

D)   8.55%.

The correct answer was D)

The bond equivalent yield (BEY) is computed as follows:

BEY = 2 x [(1 + monthly yield)⁶ - 1] = 2 x [(1 + 0.007)⁶ - 1] = 8.55%

3．e yield to maturity on an annual-pay bond 5.6 percent, what is the bond equivalent yield for this bond?

A)   5.43%.

B)   5.60%.

C)   11.20%.

D)   5.52%.

The correct answer was D)    

The bond-equivalent yield is computed as follows:

Bond-equivalent yield = 2[(1 + 0.056)^0.5 – 1] = 5.52%

4．at is the annual-pay yield for a bond with a bond-equivalent yield of 5.6 percent?

A)   5.44%.

B)   5.52%.

C)   5.60%.

D)   5.68%.

The correct answer was D)

The annual-pay yield is computed as follows:

Annual-pay yield = [(1 + 0.056/2)² – 1

5．he yield to maturity for a semiannual-pay, 10-year corporate bond is 5.25 percent. What is the bond's annual equivalent yield?

A)   5.00%.

B)   5.25%.

C)   It is not possible to determine from the data given.

D)   5.32%.

The correct answer was D)

The annual equivalent yield is equal to [1 + (nominal yield/number of payments per year)]^{number of payments per year} – 1 = (1 + 0.0525/2)2 - 1 = 5.32%.