Question 1
A 30-year zero-coupon bond that yields 12% percent is issued with a $1000 par value. What is the issuance price of the bond (round to the nearest dollar)?
A. $33
B. $83
C. $8,333
D. $3,888

 


Question 2
A 14-year zero-coupon bond was issued with a $1000 par value to yield 12%. What is the approximate market value of the bond?
A. $597
B. $205
C. $275
D. $482

 


Question 3
Which of the following does not influence the yield to maturity for a security?
A. Required real rate of return
B. Risk free rate
C. Business risk
D. Yields of similar securities

 


Question 4
An increase in the riskiness of a particular security would NOT affect:
A. the risk premium for that security.
B. the premium for expected inflation.
C. the total required return for the security.
D. investors' willingness to buy the security

    • 8 years ago
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