FINANCE FIN3300 – Staind, Inc., has 7 percent coupon bonds on the market that have 5 years

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%

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