|
Q21. A coupon bond that pays interest annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. What is the value of the bond today if the coupon rate is 8%? ffice ffice" />
A) $2,077.00.
B) $1,500.00.
C) $924.18.
Correct answer is C)
FV = 1,000
N = 5
I = 10
PMT = 80
Compute PV = 924.18.
Q22. A bond with a 12% coupon, 10 years to maturity and selling at 88 has a yield to maturity of:
A) between 13% and 14%.
B) over 14%.
C) between 10% and 12%.
Correct answer is B)
PMT = 120; N = 10; PV = -880; FV = 1,000; CPT → I = 14.3
Q23. What value would an investor place on a 20-year, $1,000 face value, 10% annual coupon bond, if the investor required a 9% rate of return?
A) $920.
B) $879.
C) $1,091.
Correct answer is C)
N = 20; I/Y = 9; PMT = 100 (0.10 × 1,000); FV = 1,000; CPT → PV = 1,091.
Q24. Today an investor purchases a $1,000 face value, 10%, 20-year, semi-annual bond at a discount for $900. He wants to sell the bond in 6 years when he estimates the yields will be 9%. What is the estimate of the future price?
A) $1,152.
B) $946.
C) $1,079.
Correct answer is C)
In 6 years, there will be 14 years (20 ? 6), or 14 × 2 = 28 semi-annual periods remaining of the bond's life So, N = (20 ? 6)(2) = 28; PMT = (1,000 × 0.10) / 2 = 50; I/Y = 9/2 = 4.5; FV = 1,000; CPT → PV = 1,079.
Note: Calculate the PV (we are interested in the PV 6 years from now), not the FV.
Q25. An investor purchased a 6-year annual interest coupon bond one year ago. The coupon rate of interest was 10% and par value was $1,000. At the time she purchased the bond, the yield to maturity was 8%. The amount paid for this bond one year ago was:
A) $1,125.53.
B) $1,092.46.
C) $1,198.07.
Correct answer is B)
N = 6
PMT = (0.10)(1,000) = 100
I = 8
FV = 1,000
PV = ?
PV = 1,092.46
Q26. A bond with a face value of $1,000 pays a semi-annual coupon of $60. It has 15 years to maturity and a yield to maturity of 16% per year. What is the value of the bond?
B) $774.84.
B) $697.71.
C) $832.88.
Correct answer is B)
FV = 1,000; PMT = 60; N = 30; I = 8; CPT → PV = 774.84
Q27. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. What is the value of the bond today if the coupon rate is 8%?
A) $1,221.17.
B) $922.78.
C) $1,144.31.
Correct answer is B)
FV = 1,000; N = 10; PMT = 40; I = 5; CPT → PV = 922.78.
Q28. A coupon bond that pays interest annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. What is the value of the bond today if the coupon rate is 12%?
A) $927.90.
B) $1,077.22
C) $1,075.82.
Correct answer is C)
FV = 1,000
N = 5
I = 10
PMT = 120
PV = ?
PV = 1,075.82.
| 
发表于 2009-3-2 17:53
| 
