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34) (a) Calculate the current value of Bond L. (See Table 6.2)
(b) What will happen to the value/price as the bond approaches maturity?
35) Calculate the current value of Bond M. (See Table 6.2)
36) Calculate the current value of Bond M if the time of maturity is six years. (See Table 6.2)
37) (a) Calculate the current value of Bond N. (See Table 6.2)
(b) What will happen to value/price as the bond approaches maturity?
41) Zhen Yi Computers has an outstanding issue of bond with a par value of $1,000, paying 12
percent coupon rate semi-annually. The bond was issued 25 years ago and has 5 years to
maturity. What is the value of the bond assuming 14 percent rate of interest?
9) What is the approximate yield to maturity for a $1,000 par value bond selling for $1,120 that
matures in 6 years and pays 12 percent interest annually?
A) 8.5 percent
B) 9.3 percent
C) 12.0 percent
D) 13.2 percent
13) Nico Corp issued bonds bearing a coupon rate of 12 percent, pay coupons semiannually,
have 3 years remaining to maturity, and are currently priced at $940 per bond. What is the yield
to maturity?
A) 12.00%
B) 13.99%
C) 14.54%
D) 15.25%
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Pearson Education Limited, 2015.