23 Jul WHAT IS THE AMOUNT OF EACH INTEREST PAYMENT IF THE FACE VALUE OF THE BONDS IS $1000?
The yield to maturity on a bond is currently 9.84 percent. The real rate of return is 3.29 percent. Show more The yield to maturity on a bond is currently 9.84 percent. The real rate of return is 3.29 percent. What is the rate of inflation? 6.53 percent 5.64 percent 6.34 percent 6.24 percent 6.71 percent An investment offers a total return of 12.4 percent over the coming year. You believe the total real return will be only 9.7 percent. What do you believe the exact inflation rate will be for the next year? 2.52 percent 2.70 percent 2.58 percent 2.46 percent 2.67 percent Suppose the real rate is 2.45 percent and the inflation rate is 1.8 percent. What rate would you expect to see on a Treasury bill? 3.56 percent 4.60 percent 3.30 percent 4.29 percent 3.35 percent Road Hazards has 12-year bonds outstanding. The interest payments on these bonds are sent directly to each of the individual bondholders. These direct payments are a clear indication that the bonds can accurately be defined as being issued: As debentures. As callable bonds. At par. In registered form. In street form. The MerryWeather Firm wants to raise $29 million to expand its business. To accomplish this the firm plans to sell 15-year $1000 face value zero-coupon bonds. The bonds will be priced to yield 7 percent. What is the minimum number of bonds the firm must sell to raise the $29 million it needs? Use annual compounding. 80012 412627 40006 206313 29000 Gugenheim Inc. offers a 7.25 percent coupon bond with annual payments. The yield to maturity is 4.025 percent and the maturity date is 10 years. What is the market price of a $1000 face value bond? $587.31 $1324.75 $913.37 $967.60 $1261.25 The price sensitivity of a bond increases in response to a change in the market rate of interest as the: Coupon rate and time to maturity both increase. Time to maturity and coupon rate both decrease. Time to maturity decreases. Coupon rate increases. Coupon rate decreases and the time to maturity increases. A premium bond that pays $60 in interest annually matures in seven years. The bond was originally issued three years ago at par. Which one of the following statements is accurate in respect to this bond today? The bond is worth less today than when it was issued. The yield-to-maturity is less than the coupon rate. The yield-to-maturity equals the current yield. The face value of the bond today is greater than it was when the bond was issued. The coupon rate is greater than the current yield. Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price of $742. The yield to maturity is 13.2 percent and the face value is $1000. Interest is paid annually. How many years is it until these bonds mature? 4.19 years 5.73 years 8.32 years 7.41 years 6.16 years The 7 percent semiannual coupon bonds offered by House Renovators are callable in two years at $1054. What is the amount of the call premium on a $1000 par value bond? $72 $84 $54 $89 $52 A bond that has only one payment which occurs at maturity defines which one of these types of bonds? Floating-rate. Debenture. Callable. Junk. Zero coupon. The 7 percent bonds issued by Modern Kitchens pay interest semiannually mature in eight years and have a $1000 face value. Currently the bonds sell for $1032. What is the yield to maturity? 6.87 percent 7.20 percent 6.08 percent 6.48 percent 6.92 percent A bond is quoted at a price of $1011. This price is referred to as the: Clean price. Maturity price. Dirty price. Call price. Face value. Global Exporters wants to raise $29.6 million to expand its business. To accomplish this it plans to sell 20-year $1000 face value zero coupon bonds. The bonds will be priced to yield 7.75 percent. What is the minimum number of bonds it must sell to raise the money it needs? 110411 135436 139800 126029 154907 The $1000 par value bonds of Uptown Tours have a coupon rate of 6.5 and a current price quote of 101.23. What is the current yield? 6.60 percent 6.42 percent 6.49 percent 6.37 percent 6.58 percent The semiannual 8-year bonds of Alto Music are selling at par and have an effective annual yield of 8.6285 percent. What is the amount of each interest payment if the face value of the bonds is $1000? $85.00 $86.29 $42.25 $43.15 $ A 10-year 4.5 percent semiannual coupon bond issued by Tyler Rentals has a $1000 face value. The bond is currently quoted at 98.7. What is the clean price of this bond if the next interest payment will occur 2 months from today? $1011.25 $994.50 $1002.00 $987.00 $1022.50 41.50 Bert owns a bond that will pay him $75 each year in interest plus a $1000 principal payment at maturity. What is the $1000 called? Discount. Yield. Face value. Coupon. Dirty price. Show less
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