You are given the following information about Bond A and Bond B:

1. Bond A is a 20-year bond that has 10,000 face amount, an annual coupon rate of 7% payable semiannually, and has a redemption value that is 10% higher than its price. Bond A is bought to yield an annual nominal interest rate of 5% convertible semiannually.
2. Bond B is an n-year bond with semiannual coupons and the same face amount, redemption value, coupon rate, and yield rate as Bond A. The price of Bond B is 158.33 less than the price of Bond A.

Calculate n

• 12
• 17
• 24
• 36
• 48

An investor buys a one-year bond with a face amount of 100 and an annual coupon rate of 6% paid semiannually. The bond is purchased at a discount of 1.50 to yield an annual nominal rateof j convertible semiannually.

Calculate j.

• 0.022
• 0.038
• 0.068
• 0.076
• 0.136

A 20-year bond with 8% annual coupons is purchased at a price of P. The face amount of the bond is F. The price assumes an annual effective yield rate of 4%. The change in book value of the bond during the 8th year is equal to 43.24.

Calculate P.

• 2315
• 2470
• 2625
• 2780
• 3085

A zero-coupon bond with a face value of 1000 sells for a price of 600 and matures in n years, where n is a whole number. A second bond has the same price, same time until maturity, and same annual effective yield. It pays annual coupons at an annual rate equal to 50% of the annual effective yield rate.

Calculate the face value of the second bond.

• 666.67
• 750.00
• 774.60
• 800.00
• 826.40

A 15-year bond with semiannual coupons is purchased for 2895.28. The bond is redeemable for 1000. The first coupon payment is equal to R and each subsequent coupon is 1% larger than the previous coupon payment. The annual nominal yield rate on this bond is 6.2% convertible semiannually.

Calculate R.

• 110
• 114
• 122
• 128
• 132

An n-year bond with an annual coupon rate of r % has the following characteristics:

1. The face amount is 980.
2. Coupons of 49 are paid semiannually.
3. The annual nominal yield rate convertible semiannually is (r + 1.8)%.
4. The purchase price is 915.70.
5. The redemption value is 1000.

Calculate n.

• 2
• 3
• 4
• 5
• 6

A zero-coupon bond with a face amount of 1000 sells for a price of 640 and matures in n years, where n is a whole number. A second bond has the same price, same time until maturity, and same annual effective yield. It pays annual coupons at an annual rate equal to 50% of the annual effective yield rate.

Calculate the face value of the second bond.

• 780
• 805
• 830
• 855
• 880

A 20-year non-callable bond that pays coupons annually has a face amount of 2000. The bond was bought at a price of 2300 and has an annual effective yield rate of 7%. A 20-year callable bond with the same annual coupon rate and face amount is callable for 2000 at the end of the 18th or 19th year.

Calculate the maximum price of the callable bond that guarantees an annual effective yield of at least 7%.

• 2268
• 2276
• 2285
• 2293
• 2300

You have decided to invest in a newly issued 20-year bond with annual coupons and the following characteristics:

1. The price at issue is 1321.
2. The face amount is 1111.
3. The annual coupon rate is 10%.
4. The bond is callable for 1111 immediately after the payment of either the 18 th or 19th coupon.

Calculate the minimum possible annual effective yield rate that you can earn.

• 7.881%
• 7.937%
• 7.985%
• 8.028%
• 8.065%

A 15-year bond with a face amount of 5000, a redemption value of C, and an annual coupon rate of 7% paid quarterly is purchased at a price that yields an annual nominal rate of 5.6% convertible quarterly.

The amount for amortization of premium in the third coupon payment is 6.88.

Calculate C.

• 5150
• 5165
• 5190
• 5235
• 5275