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78.Yield to maturity: Alice Trang planning to buy a six-year

Question : 78.Yield to maturity: Alice Trang planning to buy a six-year : 1400447

 

78.Yield to maturity: Alice Trang is planning to buy a six-year bond that pays a coupon of 10 percent semiannually. Given the current price of $878.21, what is the yield to maturity on these bonds?

a.11%

b.12%

c.13%

d.14%

79.Yield to maturity: John Wong purchased a five-year bond today at $1,034.66. The bond pays 6.5 percent semiannually. What will be his yield to maturity?

a.6.7%

b.6.2%

c.5.9%

d.5.7%

80.Yield to maturity: Huan Zhang bought a 10-year bond that pays 8.25 percent semiannually for $911.10. What is the yield to maturity on this bond?

a.7.6%

b.8.6%

c.9.6%

d.10.6%

81.Realized yield: Five years ago, Shirley Harper bought a 10-year bond that pays 8 percent semiannually for $981.10. Today, she sold it for $1,067.22. What is the realized yield on her investment? (Round to the nearest percent.)

a.7%

b.8%

c.9%

d.10%

82.Realized yield: Rachel McGovern bought a 10-year bond for $921.77 seven years ago. The bond pays a coupon of 15 percent semiannually. Today, the bond is priced at $961.92. If she sold the bond today, what would be her realized yield? (Round to the nearest percent.)

a.17%

b.18%

c.9%

d.10%

83.Realized yield: Jorge Cabrera paid $980 for a 15-year bond 10 years ago. The bond pays a coupon of 10 percent semiannually. Today, the bond is priced at $1,054.36. If he sold the bond today, what would be his realized yield? (Round to the nearest percent.)

a.12%

b.8%

c.11%

d.9%

84.Effective annual yield: Suppose an investor earned a semiannual yield of 6.4 percent on a bond paying coupons twice a year. What is the effective annual yield (EAY) on this investment?

a.12.80%

b.6.40%

c.12.36%

d.None of the above

85.Effective annual yield: Stanley Hart invested in a municipal bond that promised an annual yield of 6.7 percent. The bond pays coupons twice a year. What is the effective annual yield (EAY) on this investment?

a.13.4%

b.6.81%

c.6.70%

d.None of the above

 

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