Module 5 UNRECORDED

# Module 5 UNRECORDED - View Attempt...

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05 Unrecorded Bonds Started: April 17, 2010 4:06 PM Submitted: April 17, 2010 4:06 PM Time spent: 00:00:15 Total score:0/260 = 0% 1. Bond types and risk Match the term in column 1 with its best choice from column 2. Discount bond Par bond Premium bond zero coupon bond U.S. Treasurys a rock P<100 no price risk P>100 no reinvestment risk no default risk P=100 Statement Response Value Correct Match Discount bond not answered Incorrect P<100 Par bond not answered Incorrect P=100 Premium bond not answered Incorrect P>100 zero coupon bond not answered Incorrect no reinvestment risk U.S. Treasurys not answered Incorrect no default risk a rock not answered Incorrect no price risk General Feedback: I don't know of anything without price risk except a rock, and that probably has it, too! Score: 0/10 2-5 Quotations 2. Du Pont quotes: calculate closing yield A quote for Du Pont corporate bonds is below. Calculate the correct value for the missing yield cell. Nearest Bond Vol High Low Close Net Chg Current Yield Du Pont 6s12 20 62⅞ 62⅜ 62⅜ Student Response Value Correct Answer Feedback A. 6.67% B. 12% C. 6% D. 9.62% View Attempt file:///C:/Users/Mat/Documents/00%20-%20school/CURRENT%20CL. .. 1 of 12 4/17/2010 4:13 pm

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Student Response Value Correct Answer Feedback E. 6.375% Score: 0/10 3. Du Pont quotes: previous close A quote for Du Pont corporate bonds is below. Bond Vol High Low Close Net Chg Current Yield Du Pont 6s12 20 62⅞ 62⅜ 62⅜ What is the previous day's closing price if the bond has a face value of \$1,000? Nearest Student Response Value Correct Answer Feedback A. 62⅛ B. 61⅝ C. 62⅞ D. 61⅞ E. 61¾ Score: 0/10 4. Du Pont quotes: Number of bonds traded A quote for Du Pont corporate bonds is below. Bond Vol High Low Close Net Chg Current Yield Du Pont 6s12 20 62⅞ 62⅜ 62⅜ How many bonds traded on the day represented by the quotes? Nearest Student Response Value Correct Answer Feedback A. 20 B. 1,200 C. 200 D. 2,000 E. 12 View Attempt file:///C:/Users/Mat/Documents/00%20-%20school/CURRENT%20CL. .. 2 of 12 4/17/2010 4:13 pm
General Feedback: Unlike stock quotes which are in round lots (bundles of 100 shares), bonds are in number of bonds. Score: 0/10 5. Du Pont quotes: calculate closing price A quote for Du Pont corporate bonds is below. Bond Vol High Low Close Net Chg Current Yield Du Pont 6s12 20 62⅞ 62⅜ 62⅜ What is closing price if the bond has a face value of \$1,000? Nearest Student Response Value Correct Answer Feedback A. \$1,000 B. \$960 C. \$623.80 D. \$623.75 E. \$62.38 General Feedback: The s in the details (6s12) is merely a separator used when a coupon rate is a whole sumber. The 12 means the bond matures on the last day of 2012. Score:

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Module 5 UNRECORDED - View Attempt...

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