Unit 5 Quiz Chap. 8 And 15 Bond XYZ And Bond ABC Both Pay Annual Coupons, Mature In Seven Years, Have A Face Value Of $1,000, And Have The Same Yield-To-Maturity. Bond XYZ Has A Coupon Rate Of 8.5 Percent And Is Priced At $1,035.09. Bond ABC Has A Coupon

Unit 5 Quiz Chap. 8 and 15

Bond XYZ and bond ABC both pay annual coupons, mature in seven years, have a face value of $1,000, and have the same yield-to-maturity. Bond XYZ has a coupon rate of 8.5 percent and is priced at $1,035.09. Bond ABC has a coupon rate of 6.4 percent. What is the price of bond ABC?XYZABC  
Coupons8564  
Period77  
FV10001000  
YTM    
Price1035.09   
     
     
Six years ago, Allen Corporation issued bonds that pay annual coupons, have a face value of $1,000, have an annual coupon rate of 8.6 percent, and are scheduled to mature in four years. One year ago, you bought one of those bonds for $998. The bond just paid a coupon. If the percentage return on your bond was 4.6 percent over the past year, what is the price of the bond today?    
     
     
Today, a bond has a coupon rate of 10.8 percent, par value of $1000, 13 years until maturity, YTM of 9.6 percent, and semiannual coupons with the next one due in six months. One year ago, the price of the bond was $1,075. What is the current yield of the bond today?    
     
Microhard has issued a bond with the following characteristics:    
Par: $1,000    
Time to maturity:  15 years    
Coupon rate:  11 percent    
Semiannual payments    
     
Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your final answersto 2 decimal places. (e.g., 32.16)):    
      
  Price of the Bond  
a.11 percent$    
b.13 percent$     
c.9 percent$    
     
Stone Sour Corp issued 20 year bonds 2 years ago at a 7.1% coupon rate.  The bonds make semi-annual payments
If these bonds sell for 105% par value, what is the YTM?  Work must be shown as a formula.
     
Settlement Date1/1/2000   
Maturity Date1/1/2018   
Annual Coupon Rate7.10%   
Coupons/year2   
Face value (%of Par)100   
Bond Price (% of Par)105   
     
     
     
Rhiannon Corp. has bonds on the market with 15.5 years to maturity.  
The YTM is 6.2%,  current price is $1039.00.  The bonds make semi annual payments. 
     
What is the coupon rate?    
     
     
A Japanese company has a bond outstanding that sells for 96% of it’s 100,000 yen par value.
The bond has a coupon rate of 6.3% paid annually and matures in 19 years/  
What is the YTM of this bond?    
     
     
An investment offers a 12% total return over the coming year. An investor thinks 
the total real return will only be 8%.  What does the investor think the inflation rate will be
over the next year?    
     
     

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