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

following, interpret, discount, measures, relative

LOS b, (Part 1): Compute and interpret the traditional yield measures for fixed-rate bonds.

Q1. A bond is selling at a discount relative to its par value. Which of the following relationships holds?

A) yield to maturity < coupon rate < current yield.

B) coupon rate < current yield < yield to maturity.

C) current yield < coupon rate < yield to maturity.

Q2. PG&E has a bond outstanding with a 7% semiannual coupon that is currently priced at $779.25. The bond has remaining maturity of 10 years but has a first put date in 4 years at the par value of $1,000. Which of the following is closest to the yield to first put on the bond?

A) 7.73%.

B) 14.92%.

C) 14.46%.

Q3. Harmon Moving has a 13.25% coupon semiannual coupon bond currently trading in the market at $1,229.50. The bond has eight years remaining until maturity, but only two years until first call on the issue at 107.50% of $1,000 par value. Which of the following is closest to the yield to first call on the bond?

A) 4.72%.

B) 5.16%.

C) 9.14%.

Q4. Suppose that IBM has a $1,000 par value bond outstanding with a 12% semiannual coupon that is currently trading at 102.25 with seven years to maturity. Which of the following is closest to the yield to maturity (YTM) on the bond?

A) 11.21%.

B) 11.91%.

C) 11.52%.

Q5. A five-year bond with a 7.75% semiannual coupon currently trades at 101.245% of a par value of $1,000. Which of the following is closest to the current yield on the bond?

A) 7.53%.

B) 7.65%.

C) 7.75%.

Q6. The yield to call is a less conservative yield measure than the yield to maturity whenever the price of a callable bond is quoted at a value:

A) equal to or greater than par value plus one year's interst.

B) more than par.

C) equal to par value less one year's interest.

[此贴子已经被作者于2009-3-3 17:50:15编辑过]