FIN 3403 Principles of Financial Mgmt (Spring 2015) Chapter 7 Quiz

| June 9, 2016

Question
Review Test Submission: Chapter 7 Quiz

Course Principles of Financial Mgmt [Spring 2015]

Test Chapter 7 Quiz

Started 3/19/15 3:53 PM

• Question 1

1 out of 1 points

Beach Combers International has 5.75 percent coupon bonds outstanding with a current market price of $689.40. The yield to maturity is 11.20 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until these bonds mature?

• Question 2

1 out of 1 points

An indenture is:

• Question 3

1 out of 1 points

Wesley-Townsend bonds have an 8.25 percent coupon and pay interest annually. The face value is $1,000 and the current market price is $1,004.60 per bond. The bonds mature in 17.5 years. What is the yield to maturity?

• Question 4

1 out of 1 points

All else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity.

• Question 5

1 out of 1 points

The annual coupon payment divided by the market price of a bond is called the:

• Question 6

1 out of 1 points

You are purchasing a 30-year, zero coupon bond. The yield to maturity is 9.1 percent and the face value is $1,000. What is the current market price?

• Question 7

0 out of 1 points

Culpepper Supply has a bond issue outstanding that pays a 7.5 percent coupon and matures in 14 years. The bonds have a par value of $1,000 and a market price of $942.90. Interest is paid semiannually. What is the yield to maturity?

• Question 8

1 out of 1 points

A bond with a 9 percent coupon that pays interest semi-annually and is priced at par will have a market price of _____ and interest payments in the amount of _____ each.

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• Question 9

1 out of 1 points

A Treasury bond is quoted at a price of 104:18 with a 4.75 percent coupon. The bond pays interest semiannually. What is the current yield on one of these bonds?

• Question 10

0 out of 1 points

Which one of the following bonds has the greatest interest rate risk?

• Question 11

1 out of 1 points

An agreement giving the bond issuer the option to repurchase the bond at a specified price prior to maturity is the _____ provision.

• Question 12

1 out of 1 points

The annual coupon divided by the face value of a bond is called the:

• Question 13

1 out of 1 points

Westover Ridge offers a 9 percent coupon bond with semiannual payments and a yield to maturity of 11.68 percent. The bonds mature in 16 years. What is the market price per bond if the face value is $1,000?

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