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LOS c: Define accrued interest, full price, and clean price.
Q1. 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) $1,081.00.
B) $1,014.00.
C) $1,047.50.
Q2. 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) $105.22.
B) $103.54.
C) $108.76.
Q3. A 5% 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
Q4. If the issuer of a bond is in default, the bond will be trading:
A) on accrual.
B) flat.
C) off the market.
Q5. In the context of bonds, accrued interest:
A) is discounted along with other cash flows to arrive at the dirty, or full price.
B) covers the part of the next coupon payment not earned by seller.
C) equals interest earned from the previous coupon to the sale date.
Q6. The dirty, or full, price of a bond:
A) equals the present value of all cash flows, plus accrued interest.
B) is paid when a security trades ex-coupon.
C) applies if an issuer has defaulted.
Q7. 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.
B) $105.19 plus accrued interest.
C) $105.19 minus the coupon payment.
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发表于 2009-3-2 15:00
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