FINANCE FIN3300 – Staind, Inc., has 7 percent coupon bonds on the market that have 5 years
Subject: Business   / Finance
Question
Q1` Staind, Inc., has 7 percent coupon bonds on the market that have 5 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 10 percent, what is the current bond price?
A: $930.59
B: $1,127.01
C: $1,030.00
D: $841.96
E: $886.28
Q2` Grohl Co. issued 11-year bonds a year ago at a coupon rate of 9 percent. The bonds make semiannual payments. If the YTM on these bonds is 6 percent, what is the current bond price?
A: $1,450.32
B: $695.77
C: $1,223.16
D :$1,233.16
E: $1,143.79
Q3` Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 10.6 percent. The bonds make semiannual payments. If these bonds currently sell for 100 percent of par value, what is the YTM?
A: 12.72%
B: 5.30%
C: 10.60%
D: 9.54%
E: 11.66%
Q4` Say you own an asset that had a total return last year of 10.5 percent. If the inflation rate last year was 5 percent, what was your real return?
A: 5.34%
B: -4.98%
C: 5.44%
D: 5.14%
E: 5.24%
