Brincks BA323 Quiz Ch7
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition, 10th Edition, and 11th Edition
Check figures (only) for the Chapter 7 quiz.
Check figures (only) for the Chapter 7 quiz.
Given bond years remaining, the par value, interest rate, and yield to maturity… determine the bond’s current market price for Madsen Motors.
Your numbers will vary.
Calculate the yield to maturity (YTM) of a bond given its par value, maturity period, annual coupon rate, and current market price. Round your answer to two decimal places. Additionally, determine the expected price of the bond a couple years from today, assuming the yield to maturity remains constant. Round your answer to the nearest cent.
Your numbers will vary.
What is the bond’s price given the par value, a semiannual coupon rate, the years to maturity, and YTM?
Your numbers will vary.
What are the nominal yield to maturity and the nominal yield to call on the firm’s bonds?
Your numbers will vary.
Given the face value, annual coupon, Bond L maturity, Bond S maturity, and three rates… find the value of each bond and why the longer-term bond’s price varies more.
Your numbers will vary.
An investor has two bonds in her portfolio, Bond C and Bond Z… calculate the price of the bonds at each year.
Your numbers will vary.
Given the par value, YTM, new YTM, annual coupon rate, and perpetuity… find the percentage change in price for each bond following a decline in interest rates.
Your numbers will vary.
Compute the realized rate of return for an investor.
Your numbers will vary.
Given the years left to maturity, par value, coupon rate, and current market rates… find the yield to maturity, and if you would buy the bond if you thought that a “fair” market interest rate for such bonds.
Your numbers will vary.