If the answer is a percent - then please express it with the percentage sign and rounded-up to onedecimal. For example, if you got 7.89 as a percent - you would need to express it as 7.9%. If you got negative 7.89% you would need to express it as (7.9%).

1. Assumes Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value.

What would be the bonds value?

. Choice: $750 Choice: $1,000

Choice: $1,500

Choice: $2,000

2. Assume that two years after the Venture Healthcare bonds (ten-year maturity, a 14 percent coupon rate with annual payments, and a $1,000 par value) were issued, the required interest rate fell to 7%.

What would be the bonds value?

Choice: $750.98

Choice: $1,000.00

Choice: $1,298.56

Choice: $1,417.99

3. Assume that four years after the Venture Healthcare bonds (ten-year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value) were issued, the required interest rate rose to 15%.

What would be the bonds value? .

Choice: $886.47

Choice: $952.01

Choice: $1,000.00

Choice: $1,357.40

4. Tidewater Home Health Care, Inc., has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 10% with interest paid annually, and a par value of $1,000. The current market price of the bonds is $1,320.

What is the bonds yield to maturity?

Choice: 4.50%

Choice: 5.00%

Choice: 5.04%

Choice: 5.96%

5. Tidewater Home Health Care, Inc., has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 10% with interest paid semi-annually, and a par value of $1,000. The current market price of the bonds is $1,450. What is the bonds yield to maturity?

Choice: 1.70%

Choice: 2.50%

Choice: 3.5%

Choice: 6.0%

6. Minneapolis Health System has bonds outstanding that have four years remaining to maturity, a coupon interest rate of 9% paid annually, and a $1,000 par value. What is the yield to maturity on the issue if the current market price is

$900?

Choice: 10.00%

Choice: 12.31%

Choice: 14.99%

Choice: 23.45%

7. Minneapolis Health System has bonds outstanding that have five years remaining to maturity, a coupon interest rate of 8.5% paid annually, and a $1,000 par value. What is the yield to maturity on the issue if the current market price is $1,104?

Choice: 6.03%

Choice: 7.42%

Choice: 8.00%

Choice: 8.54% Module 5 -

8. Minneapolis Health System has bonds outstanding that have four years remaining to maturity, a coupon interest rate of 9% paid annually, and a $1,000 par value. Would you be willing to buy one of these bonds for $829 if you required a 12% rate of return on the issue?

Choice: Yes

Choice: No

9. Regal Health Plans issued a 13% annual coupon bond with a $1,000 par value a few years ago. The bond now has ten years remaining to maturity and sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060.

What is the bonds yield to maturity? Hint: Beware of superfluous information answer the question that is being asked.

Choice: 9.00%

Choice: 9.87%

Choice: 10.35%

Choice: 11.28%

10. Regal Health Plans issued a 13% annual coupon bond with a $1,000 par value a few years ago. The bond now has ten years remaining to maturity and sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,250. What is the bonds yield to call?

Choice: 5.07%

Choice: 14.57%

Choice: 15.74%

Choice: 100.00%