90.
What is the relationship between the price of a straight bond and the price of a callable
bond?
91.
Three years ago you purchased a bond for $974.69. The bond had three years to maturity,
a coupon rate of 8%, paid annually, and a face value of $1,000. Each year you reinvested
all coupon interest at the prevailing reinvestment rate shown in the table below. Today is
the bond’s maturity date. What is your realized compound yield on the bond?
92.
Which of the following is not a type of international bond?
93.
A coupon bond that pays interest annually has a par value of $1,000, matures in six years,
and has a yield to maturity of 11%. The intrinsic value of the bond today will be ______ if
the coupon rate is 7.5%.
94.
A coupon bond that pays interest annually has a par value of $1,000, matures in eight
years, and has a yield to maturity of 9%. The intrinsic value of the bond today will be
______ if the coupon rate is 6%.
95.
A coupon bond that pays interest semi-annually has a par value of $1,000, matures in six
years, and has a yield to maturity of 9%. The intrinsic value of the bond today will be
__________ if the coupon rate is 9%.
96.
A coupon bond that pays interest semi-annually has a par value of $1,000, matures in
seven years, and has a yield to maturity of 11%. The intrinsic value of the bond today will
be __________ if the coupon rate is 8.8%.
97.
A coupon bond that pays interest of $90 annually has a par value of $1,000, matures in
nine years, and is selling today at a $66 discount from par value. The yield to maturity on
this bond is
98.
A coupon bond that pays interest of $40 semi-annually has a par value of $1,000, matures
in four years, and is selling today at a $36 discount from par value. The yield to maturity on
this bond is
99.
You purchased an annual interest coupon bond one year ago that now has 18 years
remaining until maturity. The coupon rate of interest was 11% and par value was $1,000.
At the time you purchased the bond, the yield to maturity was 10%. The amount you paid
for this bond one year ago was
100.
You purchased an annual interest coupon bond one year ago that had nine years
remaining to maturity at that time. The coupon interest rate was 10% and the par value
was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold
the bond after receiving the first interest payment and the yield to maturity continued to
be 8%, your annual total rate of return on holding the bond for that year would have been
101.
Consider two bonds, F and G. Both bonds presently are selling at their par value of $1,000.
Each pays interest of $90 annually. Bond F will mature in 15 years while bond G will
mature in 26 years. If the yields to maturity on the two bonds change from 9% to 10%,
102.
A zero-coupon bond has a yield to maturity of 12% and a par value of $1,000. If the bond
matures in 18 years, the bond should sell for a price of _______ today.
103.
A zero-coupon bond has a yield to maturity of 11% and a par value of $1,000. If the bond
matures in 27 years, the bond should sell for a price of _______ today.
104.
You have just purchased a 12-year zero-coupon bond with a yield to maturity of 9% and a
par value of $1,000. What would your rate of return at the end of the year be if you sell the
bond? Assume the yield to maturity on the bond is 10% at the time you sell.
105.
You have just purchased a 7-year zero-coupon bond with a yield to maturity of 11% and a
par value of $1,000. What would your rate of return at the end of the year be if you sell the
bond? Assume the yield to maturity on the bond is 9% at the time you sell.
106.
A convertible bond has a par value of $1,000 and a current market price of $975. The
current price of the issuing firm’s stock is $42 and the conversion ratio is 22 shares. The
bond’s market conversion value is
107.
A convertible bond has a par value of $1,000 and a current market price of $1,105. The
current price of the issuing firm’s stock is $20 and the conversion ratio is 35 shares. The
bond’s market conversion value is
108.
A convertible bond has a par value of $1,000 and a current market value of $950. The
current price of the issuing firm’s stock is $22 and the conversion ratio is 40 shares. The
bond’s conversion premium is
109.
A convertible bond has a par value of $1,000 and a current market value of $150. The
current price of the issuing firm’s stock is $65 and the conversion ratio is 15 shares. The
bond’s conversion premium is
110.
If a 7% coupon bond that pays interest every 182 days paid interest 32 days ago, the
accrued interest would be
111.
If a 7.5% coupon bond that pays interest every 182 days paid interest 62 days ago, the
accrued interest would be
112.
If a 9% coupon bond that pays interest every 182 days paid interest 112 days ago, the
accrued interest would be