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Q7. If the required rate of return is 12%, what is the value of a zero coupon bond with a face value of $1,000 that matures in 20 years? Assume an annual compounding period.
A) $175.30.
B) $103.67.
C) $99.33.
Q8. A zero-coupon bond matures three years from today, has a par value of $1,000 and a yield to maturity of 8.5% (assuming semi-annual compounding). What is the current value of this issue?
A) $78.29.
B) $782.91.
C) $779.01.
Q9. A 15-year, $1,000 face value zero-coupon bond is priced to yield a return of 8.00% compounded semi-annually. What is the price of the bond, and how much interest will the bond pay over its life, respectively?
Bond Price Interest
A) $308.32 $691.68
B) $691.68 $308.32
C) $389.75 $610.25
Q10. A zero-coupon bond has a yield to maturity of 9.6% (annual basis) and a par value of $1,000. If the bond matures in 10 years, today's price of the bond would be:
A) $422.41.
B) $391.54.
C) $399.85.
Q11. A 12-year, $1,000 face value zero-coupon bond is priced to yield a return of 7.50% compounded semi-annually. What is the bond’s price?
A) $250.00
B) $419.85.
C) $413.32.
Q12. Janet Preen is considering buying a 10-year zero-coupon bond that has a $1,000 face value and is priced to yield 7.25% (semi-annual compounding). What price will Janet pay for the bond?
A) $490.58.
B) $496.62.
C) $1,000.00.
Q13. A 15-year zero coupon bond that has a par value of $1,000 and a required return of 8% would be priced at what value assuming annual compounding periods:
A) $315.
B) $464.
C) $308.
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发表于 2009-3-2 18:03
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