1.Peter Stone is considering buying a $100 face value, semi-annual coupon bond with a quoted price of 105.19. His colleague points out that the bond is trading ex-coupon. Which of the following choices best represents what Stone will pay for the bond?

A)   $105.19 plus accrued interest.

B)   $105.19 minus accrued interest.

C)   $105.19 minus the coupon payment.

D)   $105.19.

2.The dirty, or full, price of a bond:

A)   applies if an issuer has defaulted.

B)   equals the present value of all cash flows, plus accrued interest.

C)   is paid when a security trades ex-coupon.

D)   is usually less than the clean price.

3.In the context of bonds, accrued interest:

A)   equals interest earned from the previous coupon to the sale date.

B)   applies only to bonds with semi-annual or quarterly coupon payments.

C)   is discounted along with other cash flows to arrive at the dirty, or full price.

D)   covers the part of the next coupon payment not earned by seller.

4.If the issuer of a bond is in default, the bond will be trading:

A)   registered.

B)   on accrual.

C)   flat.

D)   off the market.

5.A 5 percent coupon bond with semi-annual coupon payments on a coupon payment date when the coupon has NOT been paid yet and the bond has a $1,000 par value. What is the accrued interest of the bond and what is the bond's full price?

A)                                     $25  $1,000

B)                                     $25  $1,025

C)                                     $50  $1,050

D)                                     $50  $1,000

6.Assume a bond's quoted price is 105.22 and the accrued interest is $3.54. The bond has a par value of $100. What is the bond's clean price?

A)   $100.00.

B)   $103.54.

C)   $108.76.

D)   $105.22.

7.Austin Traynor is considering buying a $1,000 face value, semi-annual coupon bond with a quoted price of 104.75 and accrued interest since the last coupon of $33.50. If Traynor pays the dirty price, how much will the seller receive at the settlement date?

A)   $1,047.50.

B)   $1,081.00.

C)   $1,014.00.

D)   $1,033.50.

答案和详解如下：

1.Peter Stone is considering buying a $100 face value, semi-annual coupon bond with a quoted price of 105.19. His colleague points out that the bond is trading ex-coupon. Which of the following choices best represents what Stone will pay for the bond?

A)   $105.19 plus accrued interest.

B)   $105.19 minus accrued interest.

C)   $105.19 minus the coupon payment.

D)   $105.19.

The correct answer was D)

Since the bond is trading ex-coupon, the buyer will pay the seller the clean price, or the price without accrued interest. So, Stone will pay the quoted price. The choice $105.19 plus accrued interest represents the dirty price (also known as full price). This bond would be said to trade cum-coupon.

2.The dirty, or full, price of a bond:

A)   applies if an issuer has defaulted.

B)   equals the present value of all cash flows, plus accrued interest.

C)   is paid when a security trades ex-coupon.

D)   is usually less than the clean price.

The correct answer was B)

The dirty price of a bond equals the quoted price plus accrued interest. If an issuer has defaulted, the bond trades without interest and is said to trade flat. When a security trades ex-coupon, the buyer pays the clean price, which is the quoted price without accrued interest. The dirty price of a bond is greater than the clean price by the amount of the accrued interest. (If the bond trades on a coupon date, the dirty price will equal the clean price.)

3.In the context of bonds, accrued interest:

A)   equals interest earned from the previous coupon to the sale date.

B)   applies only to bonds with semi-annual or quarterly coupon payments.

C)   is discounted along with other cash flows to arrive at the dirty, or full price.

D)   covers the part of the next coupon payment not earned by seller.

The correct answer was A)

This is a correct definition of accrued interest on bonds. The other choices are false. Accrued interest can occur on all bonds with periodic coupon payments, not just bonds with payment frequencies greater than one year. Accrued interest is not discounted when calculating the price of the bond. The statement, "covers the part of the next coupon payment not earned by seller," should read, "…not earned by buyer."

4.If the issuer of a bond is in default, the bond will be trading:

A)   registered.

B)   on accrual.

C)   flat.

D)   off the market.

The correct answer was C)

If an issuer of a bond is in default (i.e., it has not been making periodic contractual coupon payments), the bond is traded without accrued interest and is said to trade flat.

A registered bond is a bond whose owner's name is recorded as a book entry on the books of the issuer or its transfer agent.

5.A 5 percent coupon bond with semi-annual coupon payments on a coupon payment date when the coupon has NOT been paid yet and the bond has a $1,000 par value. What is the accrued interest of the bond and what is the bond's full price?

Accrued Interest

Full Price

A)                                     $25  $1,000

B)                                     $25  $1,025

C)                                     $50  $1,050

D)                                     $50  $1,000

The correct answer was C)

Accrued interest is found by simply dividing the coupon rate by two and then multiplying the result by $1,000. The full price or dirty price of the bond is the price of the bond plus accrued interest, if any.

6.Assume a bond's quoted price is 105.22 and the accrued interest is $3.54. The bond has a par value of $100. What is the bond's clean price?

A)   $100.00.

B)   $103.54.

C)   $108.76.

D)   $105.22.

The correct answer was D)

The clean price is the bond price without the accrued interest so it is equal to the quoted price.

7.Austin Traynor is considering buying a $1,000 face value, semi-annual coupon bond with a quoted price of 104.75 and accrued interest since the last coupon of $33.50. If Traynor pays the dirty price, how much will the seller receive at the settlement date?

A)   $1,047.50.

B)   $1,081.00.

C)   $1,014.00.

D)   $1,033.50.

The correct answer was B)

The dirty price is equal to the agreed upon, or quoted price, plus interest accrued from the last coupon date. Here, the quoted price is 1000 * 104.75%, or 1000 * 1.0475 = 1,047.50. Thus, the dirty price = 1047.50 + 33.50 = 1,081.00.