{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

finalpartasolution - FIN 4243 Fall 2009 Final Exam Part I...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 FIN 4243 Fall 2009 Final Exam Part I Solution (Version A) Name: UFID: Section (circle one): 3027 or 3038 DO NOT BEGIN UNTIL YOU ARE TOLD TO DO SO.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 Part I. Multiple Choice. 4 points per question. (Total 80 pts) 1. All else equal, which of the following is least likely to increase the interest rate risk of a bond? A. A longer maturity B. Inclusion of a call feature C. A lower coupon D. A decrease in the YTM Answer: B 2. Which of the following statements about the risks associated with investing in bonds is least accurate? 3. Which of the following is least likely a disadvantage of a callable bond to an investor? The: 4. A company has two $1,000 face value bonds outstanding both selling for $701.22. The first issue has an annual coupon of 8% and 20 years to maturity. The second bond has the same yield as the first bond but has only five years remaining until maturity. The second issue pays coupon annually as well. What is the annual coupon payment on the second issue?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}