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Q15. The bond's yield-to-maturity is: ffice ffice" />
A) the discount rate that equates the present value of the cash flows received with the price of the bond.
B) based on the assumption that the bond is held to maturity and all coupons are reinvested at the yield-to-maturity.
C) both of these are correct.
Correct answer is C)
The yield to maturity (YTM) is the interest rate that will make the present value of the cash flow from a bond equal to its market price plus accrued interest and is the most popular of all yield measures used in the bond marketplace.
Q16. A coupon bond which pays interest $100 annually has a par value of $1,000, matures in 5 years, and is selling today at a $72 discount from par value. The yield to maturity on this bond is:
A) 12.00%.
B) 7.00%.
C) 8.33%.
Correct answer is A)
PMT = 100
FV = 1,000
N = 5
PV = 1,000 ? 72 = 928
compute I = 11.997% or 12.00%
Q17. If a $1,000 bond has a 14% coupon rate and a current market price of 950, what is the current market yield?
A) 15.36%.
B) 14.74%.
C) 14.00%.
Correct answer is B)
(0.14)(1,000) = $140 coupon
140/950 × 100 = 14.74
Q18. 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) 10.02%.
B) 9.68%.
C) 14.80%.
Correct answer is A)
PV = -148; N = 20; FV = 1,000; PMT = 0; CPT → I = 10.02.
Q19. To estimate the actual return of a bond when a callable bond's market price is higher than par use:
A) YTM.
B) HPR.
C) YTC.
Correct answer is C)
To estimate the return at the point of a call the yield to call (YTC) measure is used. This is different than the YTM because the YTC uses the call price as the future value and uses the time to first call instead of the time to maturity.
Q20. A 30-year, 10% annual coupon bond is sold at par. It can be called at the end of 10 years for $1,100. What is the bond's yield to call (YTC)?
A) 8.9%.
B) 10.0%.
C) 10.6%.
Correct answer is C)
N = 10; PMT = 100; PV = 1,000; FV = 1,100; CPT → I = 10.6.
Q21. A 20-year, 10% semi-annual coupon bond selling for $925 has a promised yield to maturity (YTM) of:
A) 11.23%.
B) 9.23%.
C) 10.93%.
Correct answer is C)
N = 40, PMT = 50, PV = -925, FV = 1,000, CPT I/Y.
Q22. A coupon bond that pays interest annually is selling at par, matures in 5 years, and has a coupon rate of 12%. The yield to maturity on this bond is:
A) 60.00%.
B) 12.00%.
C) 8.33%.
Correct answer is B)
N = 5; PMT = 120; PV = -1,000; FV = 1,000; CPT → I = 12
Hint: the YTM equals the coupon rate when a bond is selling at par.
[此贴子已经被作者于2009-3-3 17:55:39编辑过] | 
发表于 2009-3-3 17:40
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