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?	XYZ	ABC
Coupons	85	64
Period	7	7
FV	1000	1000
YTM
Price	1035.09
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 Date	1/1/2000
Maturity Date	1/1/2018
Annual Coupon Rate	7.10%
Coupons/year	2
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?