Bond Quiz.docx - Question 1 2 2 pts A bond has 14 year to maturity and a coupon rate of 9 Coupons are paid semiannually If the YTM of the bond is 13

Bond Quiz.docx - Question 1 2 2 pts A bond has 14 year to...

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Question 1 2 / 2 pts A bond has 14 year to maturity and a coupon rate of 9%. Coupons are paid semi- annually. If the YTM of the bond is 13%, what is the price of the bond today? Round your answer to dollars and cents, for example 100.12. Correct! Correct Answer 745.07 margin of error +/- 0.1% Question 2 2 / 2 pts Today you purchase a 9-year bond at a YTM of 12%. The bond pays coupons annually and has a coupon rate of 11%. What is your 1-year rate of return if you sell the bond 1-year from now at a YTM of 9%. Input your answer in decimals, not percent. Answer to 4 decimal places, for example 0.1234. Correct! Correct Answer 0.2894 margin of error +/- 0.5% Question 3 2 / 2 pts On the way to campus in the morning, you purchased a 10-year, 11% coupon bond with a YTM of 10%. Later in the day, you sold the bond at a YTM of 13%. What is your 1-day rate of return on this bond investment? Input your answer in decimals, not percent. Answer to 4 decimal places, for example
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Unformatted text preview: 0.1234. Correct! Correct Answer-0.1601 margin of error +/- 0.5% Question 4 2 / 2 pts One year ago, you purchased a 6-year, 10% coupon bond at a YTM of 6%. Today (one year later) you sold the bond at a YTM of 12%. What was your percentage capital gain on this investment? Input your answer in decimals, not percent. Answer to 4 decimal places, for example 0.1234. Correct! Correct Answer-0.2246 margin of error +/- 0.5% Question 5 2 / 2 pts You purchase a 1-year, 4% coupon TIPS when rates are 12%. Over the year, inflation is 5%. You keep the bond until it matures in 1-year. What is your 1-year rate of return on this investment (the nominal rate of return)? Answer in decimals, not percent, and round to 4 decimals. For example 0.1234. Correct! Correct Answer 0.176 margin of error +/- 0.05%...
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  • Fall '08
  • Olander
  • Quiz, Fin300, Spr 19, Glenn Williams

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