[Solved] Assignment 219093

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Assignment Details

Subject: Business / Finance
Question
Question 1
The rate required in the market on a bond is called the:??
yield to maturity?
risk premium
current yield
call yield
liquidity premium
???
1 points
Question 2
ABC has issued a bond with the following characteristics:?Par: $1,000; Time to maturity: 12 years; Coupon rate: 9%; ?Assume semi-annual coupon payments. Calculate the price of this bond if the YTM is 7.11%?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????
1 points
Question 3
The 11.82 percent, $1,000 face value bonds of Tim McKnight, Inc., are currently selling at $930.02. What is the current yield??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????
1 points
Question 4
ABC’s bonds have a 9.5 percent coupon and pay interest semi-annually. Currently, the bonds are quoted at 106.315 percent of par value. The bonds mature in 8 years. What is the yield to maturity???????
1 points
Question 5
Stealers Wheel Software has 5.97% coupon bonds on the market with nine years to maturity. The bonds make semi-annual payments and currently sell for 95.23% of par. What is the current yield??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????
1 points
Question 6
ABC Inc., has $1,000 face value bonds outstanding. These bonds mature in 3 years, and have a 6.5 percent coupon. The current price is quoted at 98.59 percent of par value. Assume semi-annual payments. What is the yield to maturity??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????
1 points
Question 7
Assume that you wish to purchase a 18-year bond that has a maturity value of $1,000 and a coupon interest rate of 5%, paid semiannually. If you require a 4.42% rate of return on this investment (YTM), what is the maximum price that you should be willing to pay for this bond? That is, solve for PV.?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????
1 points
Question 8
The principal amount of a bond that is repaid at the end of term is called the par value or the:??
coupon rate
back-end amount
coupon
discount amount
face value
???
1 points
Question 9
A discount bond has a yield to maturity that:??
exceeds the coupon rate. ?
equals zero. ?
is equal to the current yield. ?
is less than the coupon rate. ?
equals the bond’s coupon rate. ?
???
1 points
Question 10
A firm’s bonds have maturity of 10 years with a $1000 face value, an 8% semi-annual coupon, are callable in 5 years, at $1,050, and currently sells at a price of $1,100. What is the yield to call (YTC)??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????
1 points
Question 11
ABC Corp. issued 15-year bonds 2 years ago at a coupon rate of 10.6%. The bonds make semi-annual payments. If these bonds currently sell for 97% of par value, what is the YTM??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????
1 points
Question 12
The yield to maturity on a Marshall Co. premium bond is 7.6 percent. This is the:??
nominal rate. ?
effective rate. ?
real rate. ?
current yield. ?
coupon rate. ?
???
1 points
Question 13
ABC’s Inc.’s bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)??Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????
1 points
Question 14
ABC has issued a bond with the following characteristics:?Par: $1,000; Time to maturity: 17 years; Coupon rate: 5%; ?Assume annual coupon payments. Calculate the price of this bond if the YTM is 11.94%?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????
1 points
Question 15
A bond which sells for less than the face value is called a:??
perpetuity. ?
debenture. ?
discount bond. ?
premium bond. ?
par value bond. ?
???
1 points
Question 16
BCD’s $1,000 par value bonds currently sell for $798.40. The coupon rate is 10%, paid semi-annually. If the bonds have 5 years to maturity, what is the yield to maturity? ?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????
1 points
Question 17
ABC has issued a bond with the following characteristics:?Par: $1,000; Time to maturity: 17 years; Coupon rate: 5%; ?Assume semi-annual coupon payments. Calculate the price of this bond if the YTM is 11.78%?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????
1 points
Question 18
You paid $908 for a corporate bond that has a 11.77% coupon rate. What is the current yield??Hint: if nothing is mentioned, then assume par value = $1,000?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.??????
1 points
Question 19
The 8 percent coupon bonds of the Peterson Co. are selling for 98 percent of par value. The bonds mature in 5 years and pay interest semi-annually. These bonds have a yield to maturity of _____ percent.??????
1 points
Question 20
ABC wants to issue 20-year, zero coupon bonds that yield 9.39 percent. What price should they charge for these bonds if they have a par value of $1,000? That is, solve for PV. Assume annual compounding.?Hint: zero coupon bonds means PMT = 0?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.??????
1 points
Question 21
The 11.51 percent coupon bonds of the Peterson Co. are selling for $815.99. The bonds mature in 5 years and pay interest semi-annually. These bonds have current yield of _____ percent.?Enter your answer in percentages rounded off to two decimal points.??????
1 points
Question 22
A premium bond is a bond that:??
has a par value which exceeds the face value. ?
has a market price which exceeds the face value. ?
is selling for less than par value. ?
has a face value in excess of $1,000. ?
is callable within 12 months or less. ?
???

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