QUESTION 19 Assume that the 1, 2, 3, 5, 10, 20, and 30 year rates were...
Assume that the 1, 2, 3, 5, 10, 20, and 30 year rates were 2%, 2.5%, 3%, 3.4%, 4.2%, 5.0%, and 5.8%, respectively. What type of yield curve is this? a. Humped. b. Normal. C. Flat d. Inverted
QUESTION 27 Assume that the 1, 2, 3, 5, 10, 20, and 30-year rates were 7%, 6.5 %, 6 6 , 5.4 % , 5.2 % , 5.0 % , and 4.8 %, respectively. What type of yield curve is this? a. Humped. b. Normal. c. Flat d. Inverted. QUESTION 28 What is the duration of a 10-year bond, selling for $877.11, with an 8% annual coupon? a. 6.95 b. 7.04 c. 7.33 d. 7.62.
Ivan is considering purchasing a 20-year bond that is selling for $1,055. Which of the following is correct if this bond has a 3.75% coupon, paid semiannually? a. The YTM < current yield. b. The current yield > YTM. c. The coupon rate > current yield. d. All of the above.
Iris is considering purchasing a 20-year bond that is selling for $1,055. Which of the following is correct if this bond has a 3.75% coupon, paid semiannually? a. The YTM <current yield. b. The current yield > YTM C. The coupon rate > current yield. d. All the above.
QUESTION 17 Andy is considering purchasing a 12-year bond that is selling for $1,300. What is the YTM for this bond if it has an 8% coupon, paid semiannually? O a. 4.63% b. 4.68%. O c. 4.70%. d. 4.72%. QUESTION 18 Slate is considering purchasing a 7-year bond that is selling for $1,017. Which of the following is correct if this bond has a 2.5% coupon, paid semiannually? a. The YTM <coupon rate. b. The current yield > coupon rate....
Denton is considering purchasing a 7-year bond that is selling for $1,017. Which of the following is correct if this bond has a 2.5% coupon, paid semiannually? a. The YTM < coupon rate. b. The current yield > coupon rate c. The current yield < YTM. d. All the above.
Slate is considering purchasing a 7-year bond that is selling for $1,017. Which of the following is correct if this bond has a 2.5% coupon, paid semiannually? a. The YTM < coupon rate. b. The current yield coupon rate. c. The current yield < YTM. d. All of the above
Bond Valuation Assume that you are considering the purchase of a 20-year, non- callable bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 8.4% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? Yield to Maturity Radoski Corporation's bonds make an annual coupon interest payment of 7.35%. The bonds have a...
ROESTTON 21 Myriam is considering purchasing a 20-year bond that is selling for $983. The bond can be called in 4 years at 103. What is the YTC for this bond if it has a 4 % coupon, paid semiannually? a. 5.18% b. 5.16% c. 4.99% d. 4.13% QUESTION 22 Assume that a bond has an 86 coupon, paid annually, is priced to have a YTM of 10%. What would happen to the YTM if the price and the other...
You currently own a 25-year maturity Government of Canada bond with a face value of $1000 that was issued Oct 15, 2015 (i.e. 5 years ago) with a 6% coupon paid semi-annually. The current price of the bond is $1075. a) What is the current YTM of this Government of Canada bond? Assume semi-annual compounding. b) You also own a Corporate bond that will mature in 20 years. It also pays a semi-annual coupon of 6% and has a face...