vv-18 - matures? a. 7 years b. 10 years c. 14 years d. 18...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 6 In-Class Drill Problems 1. Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the maturity date is 9 years. What is the market price of a $1,000 face value bond? a. $742.66 b. $868.67 c. $869.67 d. $1,078.73 e. none of the above Enter 9 5.85 70 1,000 N I/Y PV PMT FV Solve for -1,078.73 2. The zero coupon bonds of Markco, Inc. have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.87 percent. How many years is it until this bond
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: matures? a. 7 years b. 10 years c. 14 years d. 18 years e. none of the above Enter 6.87 -394.47 1,000 N I/Y PV PMT FV Solve for 14 3. DAngelos bonds have a face value of $1,000 and a current market price of $1010. The bonds have a 7 percent coupon rate. What is the current yield on these bonds? a. 6.93 percent b. 6.97 percent c. 7.00 percent d. 7.03 percent e. none of the above 1 Current yield = percent...
View Full Document

This note was uploaded on 04/07/2011 for the course BUS M 301 taught by Professor Jimbrau during the Winter '11 term at BYU.

Page1 / 2

vv-18 - matures? a. 7 years b. 10 years c. 14 years d. 18...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online