Reading 68: Yield Measures, Spot Rates, and Forward Rates percent, style, black, class

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26．A 12 percent coupon bond with semiannual payments is callable in 5 years. The call price is $1,120. If the bond is selling today for $1,110, what is the yield-to-call?

A)   10.25%.

B)   11.25%.

C)   9.95%.

D)   10.95%.

27．sider a 5-year, semiannual, 10 percent coupon bond with a maturity value of 1,000 selling for $1,081.11. The first call date is 3 years from now and the call price is $1,030. What is the yield-to-call?

A)   3.91%.

B)   7.28%.

C)   7.82%.

D)   9.31%.

28． 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)   equal to par value.

C)   more than par.

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

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

A)   7.75%.

B)   8.12%.

C)   7.53%.

D)   7.65%.

30．pose that IBM has a $1,000 par value bond outstanding with a 12 percent 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 on the bond?

A)   11.21%.

B)   11.64%.

C)   11.91%.

D)   11.52%.

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答案和详解如下：

26．A 12 percent coupon bond with semiannual payments is callable in 5 years. The call price is $1,120. If the bond is selling today for $1,110, what is the yield-to-call?

A)   10.25%.

B)   11.25%.

C)   9.95%.

D)   10.95%.

The correct answer was D)

PMT = 60, N = 10, FV = 1,120, PV = 1,110

Compute I = 5.47546

(5.47546)(2) = 10.95

27．sider a 5-year, semiannual, 10 percent coupon bond with a maturity value of 1,000 selling for $1,081.11. The first call date is 3 years from now and the call price is $1,030. What is the yield-to-call?

A)   3.91%.

B)   7.28%.

C)   7.82%.

D)   9.31%.

The correct answer was C)

N = 6, PMT = 50, FV = 1,030, PV = $1,081.11

Compute I = 3.91054

3.91054 x 2 = 7.82

28． 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)   equal to par value.

C)   more than par.

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

The correct answer was D)

The more conservative yield measure is the one that results in a lower yield. The YTM on a discount bond will always be less than its yield to call.

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

A)   7.75%.

B)   8.12%.

C)   7.53%.

D)   7.65%.

The correct answer was D)

The current yield is computed as: (Annual Cash Coupon Payment)/(Current Bond Price). The annual coupon is: ($1,000)(0.0775) = $77.50. The current yield is then: ($77.50)/($1,012.45) = 0.0765 = 7.65%

30．pose that IBM has a $1,000 par value bond outstanding with a 12 percent 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 on the bond?

A)   11.21%.

B)   11.64%.

C)   11.91%.

D)   11.52%.

The correct answer was D)

To find the YTM, enter PV= –$1,022.50, PMT=$60, N=14, FV=$1,000 and solve for I/Y=5.76%. Now multiply by 2 for the semiannual coupon payments: (5.76)(2) = 11.52%.