Reading 65:Yield Measures, Spot Rates, and Forward Rates-

face, concerning, statements, following, interest

Q31. Which of the following statements concerning the current yield is CORRECT? It:

A) is of great interest to aggressive bond investors seeking capital gains.

B) is of great interest to conservative bond investors seeking current income.

C) can be deteremined by dividing coupon income by the face value of a bond.

Q32. A 10% coupon bond, annual payments, maturing in 10 years, is expected to make all coupon payments, but to pay only 50% 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%.

Q33. 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

Q34. Find the yield to maturity of a 6% 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) 5.87%.

Q35. In capital markets, stock dividends and bond coupons generally provide what is referred to as:

A) internal yield.

B) current yield.

C) capital gain yield.

Q36. Tony Ly is a Treasury Manager with Deeter Holdings, a large consumer products holding company. The Assistant Treasurer has asked Ly to calculate the current yield (CY) and the Yield-to-first Call (YTC) on a bond the company holds that has the following characteristics:

7 years to maturity
$1,000 face value
7.0% semi-annual coupon
Priced to yield 9.0%
Callable at $1,060 in two years

If Ly calculates correctly, the CY and YTC are approximately:

CY YTC

A) 7.80% 15.72%

B) 7.80% 15.82%

C) 7.78% 15.82%

Q37. An 11% coupon bond with annual payments and 10 years to maturity is callable in 3 years at a call price of $1,100. If the bond is selling today for 975, the yield to call is:

A) 14.97%.

B) 9.25%.

C) 10.26%.

[此贴子已经被作者于2009-3-3 17:47:14编辑过]