20.For a bond with a face value of $1,000 and a coupon rate of 9%,what is the annual coupon payment? (a)$90 (b)$99 (c)$1,000 (d$1,190 Answer:(a) 21.If the market price of a coupon bond equals its face value,it is also termed a (a)par bond (b)premium bond (c)discount bond (d)zero-discount bond Answer:(a) 22.If the bond's market price is higher than its face value,it is termed a (a)par bond (b)premium bond (c)discount bond (d)zero-discount bond Answer:(b) 23.If the bond's market price is lower than its face value,it is termed a (a)par bond (b)premium bond (c)discount bond (d)zero-par bond Answer:(c) 8-6
8-6 20. For a bond with a face value of $1,000 and a coupon rate of 9%, what is the annual coupon payment? (a) $90 (b) $99 (c) $1,000 (d) $1,190 Answer: (a) 21. If the market price of a coupon bond equals its face value, it is also termed a ________. (a) par bond (b) premium bond (c) discount bond (d) zero-discount bond Answer: (a) 22. If the bond’s market price is higher than its face value, it is termed a ________. (a) par bond (b) premium bond (c) discount bond (d) zero-discount bond Answer: (b) 23. If the bond’s market price is lower than its face value, it is termed a ________. (a) par bond (b) premium bond (c) discount bond (d) zero-par bond Answer: (c)
24.If a bond selling for $850 has an annual coupon payment of $80 and a face value of $1,000,what is its current yield? (a)8.00% (b)9.41% (c)17.65% (d27.05% Answer:(b) 25.If a bond selling for $1,120 has an annual coupon payment of $110 and a face value of $1,000,what is its current yield? (a)8.90% (b)9.82% (c)10.71% (d)11.00% Answer:(b) 26.If a bond selling for $900 has an annual coupon payment of $80 and a face value of $1,000,what is its current yield? (a)8.00% (b)8.89% (c)11.00% (d20.00% Answer:(b) 27.The is the discount rate that makes the present value of the bond's stream of promised cash payments equal to its price. (a)compound rate (b)yield to maturity (c)coupon rate (d)current yield Answer:(b) 8-7
8-7 24. If a bond selling for $850 has an annual coupon payment of $80 and a face value of $1,000, what is its current yield? (a) 8.00% (b) 9.41% (c) 17.65% (d) 27.05% Answer: (b) 25. If a bond selling for $1,120 has an annual coupon payment of $110 and a face value of $1,000, what is its current yield? (a) 8.90% (b) 9.82% (c) 10.71% (d) 11.00% Answer: (b) 26. If a bond selling for $900 has an annual coupon payment of $80 and a face value of $1,000, what is its current yield? (a) 8.00% (b) 8.89% (c) 11.00% (d) 20.00% Answer: (b) 27. The ________ is the discount rate that makes the present value of the bond’s stream of promised cash payments equal to its price. (a) compound rate (b) yield to maturity (c) coupon rate (d) current yield Answer: (b)
28.Suppose you are considering buying a one-year 11%coupon bond with a face value of $1,000 and a current price of $1,020.What is its yield to maturity? (a)8.82% (b)9.00% (c)10.78% (d11.00% Answer:(a) 29.Suppose you are considering buying a one-year 11%coupon bond with a face value of $1,000 and a current price of $1,050.What is its yield to maturity? (a)4.76% (b)5.71% (c)6.00% (d)10.48% Answer:(b) 30.Suppose you are considering buying a five-year 11%coupon bond with a face value of $1,000 and a current price of $950.What is its yield to maturity? (a)5.62% (b)9.63% (c)11.58% (d12.40% Answer:(d) 31.Suppose you are considering buying a five-year 11%coupon bond with a face value of $1,000 and a current price of $1,100.What is its yield to maturity? (a)3.87% (b)8.47% (c)10.00% (d13.62% Answer:(b) 8-8
8-8 28. Suppose you are considering buying a one-year 11% coupon bond with a face value of $1,000 and a current price of $1,020. What is its yield to maturity? (a) 8.82% (b) 9.00% (c) 10.78% (d) 11.00% Answer: (a) 29. Suppose you are considering buying a one-year 11% coupon bond with a face value of $1,000 and a current price of $1,050. What is its yield to maturity? (a) 4.76% (b) 5.71% (c) 6.00% (d) 10.48% Answer: (b) 30. Suppose you are considering buying a five-year 11% coupon bond with a face value of $1,000 and a current price of $950. What is its yield to maturity? (a) 5.62% (b) 9.63% (c) 11.58% (d) 12.40% Answer: (d) 31. Suppose you are considering buying a five-year 11% coupon bond with a face value of $1,000 and a current price of $1,100. What is its yield to maturity? (a) 3.87% (b) 8.47% (c) 10.00% (d) 13.62% Answer: (b)