Unit 5 quiz chap. 8 and 15 bond xyz and bond abc both pay annual
Bond XYZ and bond ABC both pay annual coupons, mature in seven years, have a face value of $1,000, and have the same yield-to-maturity. Bond XYZ has a coupon rate of 8.5 percent and is priced at $1,035.09. Bond ABC has a coupon rate of 6.4 percent. What is the price of bond ABC?
XYZ
ABC
Coupons
85
64
Period
7
7
FV
1000
1000
YTM
Price
1035.09
Six years ago, Allen Corporation issued bonds that pay annual coupons, have a face value of $1,000, have an annual coupon rate of 8.6 percent, and are scheduled to mature in four years. One year ago, you bought one of those bonds for $998. The bond just paid a coupon. If the percentage return on your bond was 4.6 percent over the past year, what is the price of the bond today?
Today, a bond has a coupon rate of 10.8 percent, par value of $1000, 13 years until maturity, YTM of 9.6 percent, and semiannual coupons with the next one due in six months. One year ago, the price of the bond was $1,075. What is the current yield of the bond today?
Microhard has issued a bond with the following characteristics:
Par: $1,000
Time to maturity: 15 years
Coupon rate: 11 percent
Semiannual payments
Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your final answersto 2 decimal places. (e.g., 32.16)):
Price of the Bond
a.
11 percent
b.
13 percent
c.
9 percent
Stone Sour Corp issued 20 year bonds 2 years ago at a 7.1% coupon rate. The bonds make semi-annual payments
If these bonds sell for 105% par value, what is the YTM? Work must be shown as a formula.
Settlement Date
1/1/2000
Maturity Date
1/1/2018
Annual Coupon Rate
7.10%
Coupons/year
2
Face value (%of Par)
100
Bond Price (% of Par)
105
Rhiannon Corp. has bonds on the market with 15.5 years to maturity.
The YTM is 6.2%, current price is $1039.00. The bonds make semi annual payments.
What is the coupon rate?
A Japanese company has a bond outstanding that sells for 96% of it’s 100,000 yen par value.
The bond has a coupon rate of 6.3% paid annually and matures in 19 years/
What is the YTM of this bond?
An investment offers a 12% total return over the coming year. An investor thinks
the total real return will only be 8%. What does the investor think the inflation rate will be
over the next year?
