91. A 16-year, 4.5 percent coupon bond pays interest
annually. The bond has a face value of $1,000. What is the percentage change in
the price of this bond if the market yield to maturity rises to 5.7 percent
from the current rate of 5.5 percent?
A. 2.14 percent decrease
B. 1.97 percent decrease
C. 0.21 percent increase
D. 1.97 percent increase
E. 2.14 percent increase
92. The Corner Grocer has a 7-year, 6 percent annual
coupon bond outstanding with a $1,000 par value. The bond has a yield to
maturity of 5.5 percent. Which one of the following statements is correct if
the market yield suddenly increases to 6.5 percent?
A. The bond price will increase by $57.14.
B. The bond price will increase by 5.29 percent.
C. The bond price will decrease by $53.62.
D. The bond price will decrease by 5.43 percent.
E. The bond price will decrease by 5.36 percent.
93. Blackwell bonds have a face value of $1,000 and
are currently quoted at 98.4. The bonds have a 5 percent coupon rate. What is
the current yield on these bonds?
A. 4.67 percent
B. 4.78 percent
C. 5.08 percent
D. 5.33 percent
E. 5.54 percent
94. The outstanding bonds of The River Front Ferry
carry a 6.5 percent coupon. The bonds have a face value of $1,000 and are
currently quoted at 101.6. What is the current yield on these bonds?
A. 1.60 percent
B. 2.37 percent
C. 6.40 percent
D. 6.49 percent
E. 6.88 percent
95. The 7 percent, semi-annual coupon bonds offered by
House Renovators are callable in 2 years at $1,054. What is the amount of the
call premium on a $1,000 par value bond?
A. $52
B. $54
C. $72
D. $84
E. $89
96. A corporate bond was quoted yesterday at 102.16
while today’s quote is 102.19. What is the change in the value of a bond that
has a face value of $6,000?
A. $0.30
B. $1.80
C. $3.00
D. $18.00
E. $180.00
97. A 10-year, 4.5 percent, semiannual coupon bond
issued by Tyler Rentals has a $1,000 face value. The bond is currently quoted
at 98.7. What is the clean price of this bond if the next interest payment will
occur 2 months from today?
A. $987.00
B. $994.50
C. $1,002.00
D. $1,011.25
E. $1,022.50
98. A Treasury bond is quoted at a price of 105:15.
What is the market price of this bond if the face value is $5,000?
A. $5,005.15
B. $5,105.15
C. $5,257.50
D. $5,273.44
E. $5,515.00
99. A Treasury bond is quoted at a price of 101:14
with a current yield of 7.236 percent. What is the coupon rate?
A. 7.20 percent
B. 7.28 percent
C. 7.30 percent
D. 7.34 percent
E. 7.39 percent
100. A corporate bond is quoted at a price of 103.16
and carries a 6.50 percent coupon. The bond pays interest semiannually. What is
the current yield on one of these bonds?
A. 6.24 percent
B. 6.30 percent
C. 6.36 percent
D. 6.62 percent
E. 6.66 percent
