Question: MULTIPLE CHOICE. Choose the one altermative that best completes the statement or answers the question 1) Cabell Corp. bonds pay an annual coupon rate of

 MULTIPLE CHOICE. Choose the one altermative that best completes the statement

MULTIPLE CHOICE. Choose the one altermative that best completes the statement or answers the question 1) Cabell Corp. bonds pay an annual coupon rate of 10%. If investors' required rate of return is now 12% on these bonds, they will be priced at A) a premium to par value. B) a discount to par value. C) par value. D) Cannot be determined without knowing the number of years to maturity 2) Finance theory suggests that the current value of a bond is based upon which of the following? A) the sum of the present value of a bond's par value plus the future value of the bond's coupon B) the sum of the future values of interest paid on a bond and the par value C) the sum total of principal and interest paid on a bond D) the sum of the present value of the bond's coupons and the present value of the principal 3) Alice Kitchen's, Inc. bonds have a 10% coupon rate with semiannual coupon payments. They have 12 and 1/2 years to maturity and a par value of $1,000. Compute the value ofA lice's bonds if investors' required rate of return is 8%. A) $1.156.22 B) $1,239.33 C) S1,084.44 D) $1,137.10 4) Watch-over-ya Securities has issued $1,000 par value bonds with 21 years maturity mi-annual basis. The eurrent market pree or The bonds pay 7.75% interest on a se the bonds is $1,350. What is the yield-to-maturity of these bonds? A) 7.21% B) 8.26%, C) 2.52% D) 5.03% and has a yield-to-maturity of 7%. How much would the price of bond ehange nterest rate in the economy increases by 0.80% per year A increase by approximately $101 B) decrease by approximately $101 ") decrease by approximately $52 increase by approximately $60o Consider a 10 year bond with face value S1,000, pays 6/% coupon semi-annual

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