A bond has a $1,000 par value, a 7% annual coupon, and matures in 19 years. What is the price of this bond (to the nearest dollar) if it has a yield of 12%?

Your Answer:

Question 1 options:

Answer

Question 2 (2 points)

A bond has a $1,000 par value, a 14% semiannual coupon, and matures in 6 years. What is the price of this bond (to the nearest dollar) if it has a yield of 12%?

Your Answer:

Question 2 options:

Answer

Question 3 (2 points)

A bond with a 10% annual coupon matures in 6 years. The bond has a price of $1,200. What is the yield to maturity for this bond?

Question 3 options:

	2.99%
	5.94%
	5.98%
	7.42%

Question 4 (2 points)

A bond with a 10% semiannual coupon matures in 6 years. The bond has a price of $1,200. What is the yield to maturity for this bond?

Question 4 options:

	2.99%
	5.94%
	5.98%
	7.42%

Question 5 (2 points)

A bond with a 10% semiannual coupon matures in 6 years. The bond has a price of $1,200. What is the effective yield to maturity for this bond?

Question 5 options:

	5.94%
	6.07%
	7.56%
	12.32%

Question 6 (2 points)

A bond with a 8% annual coupon matures in 5 years and has a price of $1,097. Compute the current yield for this bond. Show your answer in percent to 1 decimal place (i.e. xx.y).

Your Answer:

Question 6 options:

Answer

Question 7 (2 points)

If its yield to maturity declined by 1%, which of the following bonds would have the largest percentage increase in value

Question 7 options:

	A 1-year zero coupon bond.
	A 1-year bond with an 8% coupon.
	A 10-year bond with an 8% coupon.
	A 10-year bond with a 12% coupon.
	A 10-year zero coupon bond.

Question 8 (2 points)

Which of the following would result in a decrease in bond prices?

Question 8 options:

	Interest rates decrease.
	Time passes and a discount bond moves closer to maturity.
	The bond rating of a bond changes from BBB to C.