Quiz 10 2010

- C 5.20 D 5.50 6 A convertible bond has a par value of $1,000 but its current market price is $950 The current price of the issuing company's

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

View Full Document Right Arrow Icon
DePaul University Name______________________________ Winter Quarter, 2010 Total points = 12 FINANCE 330 INVESTMENT ANALYSIS QUIZ 10 1. Sinking funds are commonly viewed as protecting the _______ of the bond. A. issuer B. underwriter C. holder D. dealer 2. A debenture is _________. A. secured by other securities held by the firm B. secured by equipment owned by the firm C. secured by property owned by the firm D. unsecured 3. A __________ bond is a bond where the issuer has an option to retire the bond before maturity at a specific price after a specific date. A. callable B. coupon C. puttable D. treasury 4. In an era of particularly low interest rates, which of the following bonds is most likely to be called? A. Zero coupon bonds B. Coupon bonds selling at a discount C. Coupon bonds selling at a premium D. Floating rate bonds 5. If the coupon rate on a bond is 4.50% and the bond is selling at a premium, which of the following is the most likely yield to maturity on the bond? A. 4.30% B. 4.50%
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: C. 5.20% D. 5.50% 6. A convertible bond has a par value of $1,000 but its current market price is $950. The current price of the issuing company's stock is $19 and the conversion ratio is 40 shares. The bond's conversion premium is _________. DePaul University Page 2 Winter Quarter, 2010 FINANCE 330 INVESTMENT ANALYSIS QUIZ 10 7. One year ago, you purchased a newly issued TIPS bond that has a 6% coupon rate, five years to maturity, and a par value of $1,000. The average inflation rate over the year was 4.2%. A) What is the current face value of the bond and B) what is the amount of the coupon payment you will receive? C) What was the nominal return and D) what was the real return? (4 points) 8. A bond is quoted in the Wall Street Journal at 99.0. The coupon rate is 8%, paid semiannually (every 182 days) and 40 days have passed since the last coupon payment. What is the invoice price of the bond, including accrued interest? (2 points)...
View Full Document

This note was uploaded on 09/26/2011 for the course FIN 334 taught by Professor Fin334 during the Winter '10 term at Ill. Chicago.

Page1 / 2

- C 5.20 D 5.50 6 A convertible bond has a par value of $1,000 but its current market price is $950 The current price of the issuing company's

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