[2008]Topic 26: Yield to Maturity相关习题 calculator, selling, between, money

Baran

AIM 2: Compute a bond’s YTM using the time value of money functions of a financial calculator.

 

1、A bond with a 12% coupon, 10 years to maturity and selling at 88 has a yield to maturity of:

A) between 10% and 12%.
 
B) over 14%.
 
C) between 13% and 14%.
 
D) between 12% and 13%.

Baran

The correct answer is B

PMT = 120; N = 10; PV = -880; FV = 1,000; CPT → I = 14.3

Baran

2、What is the yield to maturity (YTM) of a 20-year, U.S. zero-coupon bond selling for $300?

A) 3.06%.
 
B) 6.11%.
 
C) 5.90%.
 
D) 7.20%.

Baran

The correct answer is B

N = 40; PV = 300; FV = 1,000; CPT → I = 3.055 × 2 = 6.11.

Baran

3、A 20-year, 9 percent annual coupon bond selling for $1,098.96 offers a yield of:

A) 10%.
 
B) 8%.
 
C) 9%.
 
D) 11%.

Baran

The correct answer is B

N = 20, PMT = 90, PV = -1,098.96, FV = 1,000, CPT I/Y

Baran

4、A zero coupon bond with a face value of $1,000 has a price of $148. It matures in 20 years. Assuming annual compounding periods, the yield to maturity of the bond is:

A) 9.68%.
 
B) 10.02%.
 
C) 11.24%.
 
D) 14.80%.
 

Baran

The correct answer is B

PV = -148; N = 20; FV = 1,000; PMT = 0; CPT → I = 10.02.

Baran

5、Which of the following statements concerning the yield-to-maturity on a bond is CORRECT? Yield to maturity (YTM) is:

A) the discount rate that will set the present value of the payments equal to the bond price.
 
B) always larger than current yield of the bond.
 
C) based on the assumption that any payments received are reinvested at the current yield.
 
D) below the current yield minus capital gain when the bond sells at a discount, and above the current yield plus capital loss when the bond sells at a premium.

Baran

The correct answer is A

When a bond is selling at a premium, the current yield will be larger than the YTM.   Reinvestments occur at the YTM. The YTM will find the present value of a future value and associated payments.