Bond A and Bond B are each five-year 1000 face amount bonds. In addition:

1. Bond A has an annual coupon rate of 5% paid semiannually.
2. Bond B has an annual coupon rate of 3% paid annually.
3. The price of Bond B is 100 less than the price of Bond A.
4. The annual effective yield rate for Bond A is 4%.

Calculate the annual effective yield rate for Bond B.

• 4.15%
• 4.20%
• 4.25%
• 4.30%
• 4.35%

An investor purchases a 20-year, 1000 face amount bond with semiannual coupons at a price equal to the redemption value of 900. The bond yields an annual nominal rate of 10% convertible semiannually. After ten years, the investor sells the bond, yielding to the buyer an annual nominal rate of 8% convertible semiannually. The investor uses the proceeds to purchase a 10-year, 1000 face amount bond with redemption value 1100 and semiannual coupons. The yield rate on the new bond is an annual nominal rate of 8% convertible semiannually.

Calculate the semiannual coupon payment for the new bond.

• 34
• 38
• 41
• 45
• 50

A 1000 par value ten-year bond with 7.6% semiannual coupons is bought to yield 6.0% convertible semiannually.

Calculate the book value of the bond at the end of year six immediately after the coupon payment.

• 1054
• 1056
• 1059
• 1062
• 1065

A steel company issued a ten-year 1,000,000 face amount bond on March 1, 2002 with an annual nominal coupon rate of 8% paid semiannually. On September 2, 2004, Company X paid 1,100,000 for this bond to yield an annual nominal rate of i convertible semiannually.

Calculate i.

• 4.0%
• 5.5%
• 6.3%
• 8.0%
• 9.7%

An investor purchases a 30-year bond with a face amount of 1000 and annual coupon rate of 8% paid semi-annually. The bond is callable at its face value any time following the coupon payment occurring at the end of the 15th year. The bond is bought at a premium based on an annual effective yield rate of 7%.

Calculate the purchase price of the bond.

• 1067
• 1104
• 1132
• 1141
• 1154

A 27-year bond, with a price equal to 75% of its face value, offers annual coupons with the coupon rate equal to 21/37 of the annual effective yield rate. An n-year zero-coupon bond has the same price, face value, and yield rate.

Calculate n.

• 5
• 7
• 9
• 11
• 13

A ten-year 100 face amount bond has an annual coupon rate of 8% payable semiannually. The bond is callable at the end of the 5th , 7th , and 9th years at par, immediately after the coupon payment.

Calculate the maximum price of the bond that ensures an annual effective yield of at least 6%.

• 108.92
• 111.83
• 114.41
• 115.59
• 116.74

Each of bonds A, B, and C sells for 10,000 and has the same annual effective yield rate and term. The par values and coupon rates are shown below.

Each bond is redeemed at par, and all coupons are paid annually. The par values and coupon rates are shown below.

Calculate X.

• 12,240
• 12,630
• 13,130
• 13,540
• 14,450

A bank issues two 30-year bonds, A and B, each with annual coupons, an annual effective yield rate of 7%, and a face amount of 1000. The total price of these two bonds is 3000. Bond B's annual coupon rate is equal to Bond A's annual coupon rate plus 0.5%.

Calculate the annual coupon rate of Bond A.

• 10.06%
• 10.78%
• 10.90%
• 11.31%
• 11.84%

A ten-year bond with a face amount of 1000, a redemption value of C, and an annual coupon rate of 7% paid semiannually is purchased at a discount to yield an annual nominal rate of 7.5%, convertible semiannually. The accumulation of discount in the 12th coupon is 7.

Calculate C.

• 673
• 799
• 1193
• 1344
• 1540