Q34. A firm issues a $5 million zero coupon bond with a maturity of four years when market rates are 8%. Assuming semiannual compounding periods, the total interest on this bond is: A) $1,200,000. B) $1,600,000. C) $1,346,549.
Q35. A company issued an annual-pay bond with a face value of $135,662, maturity of 4 years, and 7% coupon, while the market interest rates are 8%. What is the present value of the interest payments on the date when the bonds are issued? A) $131,164. B) $49,857. C) $31,453.
Q36. What is the unamortized discount on the date when the bonds are issued? A) $499. B) $1,748. C) $4,493.
Q37. What is the unamortized discount at the end of the first year? A) $1,209. B) $538. C) $3,495.
Q38. When bonds are issued at a premium:
A) earnings of the firm increase over the life of the bond as the bond premium is amortized. B) coupon interest paid decreases each period as bond premium is amortized. C) earnings of the firm decrease over the life of the bond as the bond premium is amortized.
Q39. Assume a city issues a $5 million bond to build a hockey rink. The bond pays 8% semiannual interest and will mature in 10 years. Current interest rates are 6%. What is the present value of this bond? A) $5,743,874. B) $5,000,000. C) $3,363,478.
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发表于 2009-1-19 11:30
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