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Bonds
Bonds
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1
A bond with Face value $1000 have 12 years to maturity. annual coupon is 8% & YTM 9% what is the current yield?
9.26%
9.62%
8.26%
8.62%
2
Most corporate bonds contain a .......... which gives the issuing corporation the right to call the bonds for redemption
Legal reserve
Retain earning
Call Provision
capital Backup
3
What is the yield to maturity on a 10-year, 9 % annual coupon, $1,000 par value bond that sells for $887.00?
10.91%
11.91%
9.91%
12.91%
4
A bond with face value $1000, currently sells at $ 985 and pay a coupon 10% What is the Current Yield?
10.15%
10.45%
10.35%
10.55%
5
A Bond have 12 years to maturity. its face value $1,000, YTM 9%. and pay annual coupon 8%, what is the market value ?
892.40
928.40
990.40
829.40
6
Municipal bonds are issued by local governments. However, (Munis) offer one major advantage over other bonds which is
Issued With warrants
Low Flotation Cost
Exempted From Federal Tax
Redeemable Option
7
A Bond have 7 years to maturity. its face value $1,000, YTM 8%. and pay annual coupon 9%, what is the current yield?
8.45%
8.25%
8.55%
8.15%
8
A bond with face value $1000,
Zero coupon
& 5 years to Maturity, what is the value the bond if RRR is 12%
$ 567.43
$ 576.43
$457.43
$ 657.43
9
Foreign Bond is issued by foreign government/corporation so it is exposed to default risk, in addition to..........
Country Risk
Market Risk
Operations Risk
Currency Risk
10
A bond with $1000 face Value have 7 years to maturity & YTM 8%, annual Coupon 9% Per year , what is the current yield?
8.95%
8.85%
8.75%
8.55%
11
A bond with face value $1000, 6%
Semi Annual Coupon
&2 years to maturity, what is PV of that Bond? Noting That RRR =8%
$ 963.70
$936.70
$ 907.36
$970.36
12
Which of the following events would make a company choose to call its outstanding callable bonds?
Market interest rates decline sharply
The company's financial situation deteriorates significantly
Market interest rates rise sharply
The company’s bonds are downgraded.