1.If interest rates and risk factors are constant over a given period, then a fixed income bond trading at a discount will have a:

A)   positive current yield, only.

B)   negative current yield and a positive capital gain yield.

C)   negative capital gain yield, only.

D)   positive current yield and a positive capital gain yield.

2.In capital markets, stock dividends and bond coupons generally provide what is referred to as:

A)   current yield.

B)   capital gain yield.

C)   price yield.

D)   internal yield.

3.Find the yield to maturity of a 6 percent coupon bond, priced at $1,115.00. The bond has 10 years to maturity and pays semi-annual coupon payments.

A)   4.56%.

B)   8.07%.

C)   5.26%.

D)   5.87%.

4.Which statement describes a premium bond and discount bond?

A)                                        Coupon rate < current yield > yield-to-maturity  Coupon rate < current yield < yield-to-maturity

B)                                        Coupon rate < current yield > yield-to-maturity  Coupon rate > current yield < yield-to-maturity

C)                                        Coupon rate > current yield > yield-to-maturity  Coupon rate < current yield < yield-to-maturity

D)                                        Coupon rate > current yield < yield-to-maturity  Coupon rate < current yield < yield-to-maturity

5.A 10 percent coupon bond, annual payments, maturing in 10 years, is expected to make all coupon payments, but to pay only 50 percent of par value at maturity. What is the expected yield on this bond if the bond is purchased for $975?

A)   8.68%.

B)   6.68%.

C)   10.68.

D)   11.00%.

答案和详解如下：

1.If interest rates and risk factors are constant over a given period, then a fixed income bond trading at a discount will have a:

A)   positive current yield, only.

B)   negative current yield and a positive capital gain yield.

C)   negative capital gain yield, only.

D)   positive current yield and a positive capital gain yield.

The correct answer was D)

A bond is designed to have a current yield. If it is trading at a discount, and other things remain constant, then it will rise in value over the given time period.

2.In capital markets, stock dividends and bond coupons generally provide what is referred to as:

A)   current yield.

B)   capital gain yield.

C)   price yield.

D)   internal yield.

The correct answer was A)

Current yield is based on actual cash received during the investment horizon and is typically composed of dividends and interest.

3.Find the yield to maturity of a 6 percent coupon bond, priced at $1,115.00. The bond has 10 years to maturity and pays semi-annual coupon payments.

A)   4.56%.

B)   8.07%.

C)   5.26%.

D)   5.87%.

The correct answer was A)

N = 10 * 2 = 20; PV = -1,115.00; PMT = 60/2 = 30; FV = 1,000.

Compute I = 2.28 (semiannual) * 2 = 4.56%

4.Which statement describes a premium bond and discount bond?

Premium bond

Discount bond

A)                                        Coupon rate < current yield > yield-to-maturity  Coupon rate < current yield < yield-to-maturity

B)                                        Coupon rate < current yield > yield-to-maturity  Coupon rate > current yield < yield-to-maturity

C)                                        Coupon rate > current yield > yield-to-maturity  Coupon rate < current yield < yield-to-maturity

D)                                        Coupon rate > current yield < yield-to-maturity  Coupon rate < current yield < yield-to-maturity

The correct answer was C)

If the coupon rate > market yield, then bond will sell at a premium.
If the coupon rate < market yield, then bond will sell at a discount.
If the coupon rate = market yield, then bond will sell at par.
In addition, if the bond is selling at a premium, the current yield will be between the coupon rate and market rate.

5.A 10 percent coupon bond, annual payments, maturing in 10 years, is expected to make all coupon payments, but to pay only 50 percent of par value at maturity. What is the expected yield on this bond if the bond is purchased for $975?

A)   8.68%.

B)   6.68%.

C)   10.68.

D)   11.00%.

The correct answer was B)

PMT = 100, N = 10, FV = -500, PV = 975

compute I = 6.68