投资学第7版Test Bank答案14Word文档下载推荐.docx

投资学第7版Test Bank答案14Word文档下载推荐.docx

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70/975=7.18.

3.Ifa6%couponbondistradingfor$950.00,ithasacurrentyieldof____________percent.

A）6.5

B）6.3

C）6.1

D）6.0

E）6.6

BDifficulty:

60/950=6.3.

4.Ifan8%couponbondistradingfor$1025.00,ithasacurrentyieldof____________percent.

A）7.8

B）8.7

C）7.6

D）7.9

E）8.1

80/1025=7.8.

5.Ifa7.5%couponbondistradingfor$1050.00,ithasacurrentyieldof____________percent.

A）7.0

B）7.4

C）7.1

D）6.9

E）6.7

CDifficulty:

75/1050=7.1.

6.Acouponbondpaysannualinterest,hasaparvalueof$1,000,maturesin4years,hasacouponrateof10%,andhasayieldtomaturityof12%.Thecurrentyieldonthisbondis___________.

A）10.65%

B）10.45%

C）10.95%

D）10.52%

Moderate

FV=1000,n=4,PMT=100,i=12,PV=939.25;

$100/$939.25=10.65%.

7.Acouponbondpaysannualinterest,hasaparvalueof$1,000,maturesin12years,hasacouponrateof11%,andhasayieldtomaturityof12%.Thecurrentyieldonthisbondis___________.

A）10.39%

B）10.43%

C）10.58%

D）10.66%

DDifficulty:

FV=1000,n=12,PMT=110,i=12,PV=938.06;

$100/$938.06=10.66%.

8.Ofthefollowingfourinvestments,________isconsideredthesafest.

A）commercialpaper

B）corporatebonds

C）U.S.Agencyissues

D）Treasurybonds

E）Treasurybills

OnlyTreasuryissuesareinsuredbytheU.S.government;

theshorter-termtheinstrument,thesafertheinstrument.

9.Toearnahighratingfromthebondratingagencies,afirmshouldhave

A）alowtimesinterestearnedratio

B）alowdebttoequityratio

C）ahighquickratio

D）BandC

E）AandC

Highvaluesforthetimesinterestandquickratiosandalowdebttoequityratioaredesirableindicatorsofsafety.

10.Atissue,couponbondstypicallysell________.

A）aboveparvalue

B）belowpar

C）atornearparvalue

D）atavalueunrelatedtopar

Iftheinvestmentbankerhasappraisedthemarketandthequalityofthebondcorrectly,thebondwillsellatornearpar（unlessinterestrateshavechangedverydramaticallyandveryquicklyaroundthetimeofissuance）.

11.Accruedinterest

A）isquotedinthebondpriceinthefinancialpress.

B）mustbepaidbythebuyerofthebondandremittedtothesellerofthebond.

C）mustbepaidtothebrokerfortheinconvenienceofsellingbondsbetweenmaturitydates.

D）AandB.

E）AandC.

Accruedinterestmustbepaidbythebuyer,butisnotincludedinthequotationspageprice.

12.Theinvoicepriceofabondthatabuyerwouldpayisequalto

A）theaskedpriceplusaccruedinterest.

B）theaskedpricelessaccruedinterest.

C）thebidpriceplusaccruedinterest.

D）thebidpricelessaccruedinterest.

E）thebidprice.

Thebuyerofabondwillbuyattheaskedpriceandwillalsobeinvoicedforanyaccruedinterestduetotheseller.

13.An8%couponU.S.TreasurynotepaysinterestonMay30andNovember30andistradedforsettlementonAugust15.Theaccruedinterestonthe$100,000facevalueofthisnoteis_________.

A）$491.80

B）$800.00

C）$983.61

D）$1,661.20

76/183（$4,000）=$1,661.20.Approximation:

.08/12*100,000=666.67permonth.666.67/month*2.5months=1.666.67.

14.Acouponbondisreportedashavinganaskpriceof113%ofthe$1,000parvalueintheWallStreetJournal.Ifthelastinterestpaymentwasmadetwomonthsagoandthecouponrateis12%,theinvoicepriceofthebondwillbe____________.

A）$1,100

B）$1,110

C）$1,150

D）$1,160

$1,130+$20（accruedinterest）=$1,150.

15.ThebondsofFordMotorCompanyhavereceivedaratingof"

D"

byMoody'

s.The"

ratingindicates

A）thebondsareinsured

B）thebondsarejunkbonds

C）thebondsarereferredtoas"

highyield"

bonds

D）AandB

E）BandC

Dratingsareriskybonds,oftencalledjunkbonds（orhighyieldbondsbythosemarketingsuchbonds）.

16.Thebondmarket

A）canbequite"

thin"

.

B）primarilyconsistsofanetworkofbonddealersintheoverthecountermarket.

C）consistsofmanyinvestorsonanygivenday.

E）BandC.

Thebondmarket,unlikethestockmarket,canbeaverythinlytradedmarket.Inaddition,mostbondsaretradedbydealers.

17.Ceterisparibus,thepriceandyieldonabondare

A）positivelyrelated.

B）negativelyrelated.

C）sometimespositivelyandsometimesnegativelyrelated.

E）notrelated.

E）indefinitelyrelated.

Bondpricesandyieldsareinverselyrelated.

18.The______isameasureoftheaveragerateofreturnaninvestorwillearniftheinvestorbuysthebondnowandholdsuntilmaturity.

A）currentyield

B）dividendyield

C）P/Eratio

D）yieldtomaturity

E）discountyield

Thecurrentyieldistheannualinterestasapercentofcurrentmarketprice;

theotherchoicesdonotapplytobonds.

19.The_________givesthenumberofsharesforwhicheachconvertiblebondcanbeexchanged.

A）conversionratio

B）currentratio

D）conversionpremium

E）convertiblefloor

Theconversionpremiumistheamountforwhichthebondsellsaboveconversionvalue;

thepriceofbondasastraightbondprovidesthefloor.Theothertermsarenotspecificallyrelevanttoconvertiblebonds.

20.Acouponbondisabondthat_________.

A）paysinterestonaregularbasis（typicallyeverysixmonths）

B）doesnotpayinterestonaregularbasisbutpaysalumpsumatmaturity

C）canalwaysbeconvertedintoaspecificnumberofsharesofcommonstockintheissuingcompany

D）alwayssellsatpar

Acouponbondwillpaythecouponrateofinterestonasemiannualbasisunlessthefirmdefaultsonthebond.Convertiblebondsarespecifictypesofbonds.

21.A___________bondisabondwherethebondholderhastherighttocashinthebondbeforematurityataspecifiedpriceafteraspecificdate.

A）callable

B）coupon

C）put

D）Treasury

E）zero-coupon

Anybondmayberedeemedpriortomaturity,butallbondsotherthanputbondsareredeemedatapricedeterminedbytheprevailinginterestrates.

22.Callablebonds

A）arecalledwheninterestratesdeclineappreciably.

B）haveacallpricethatdeclinesastimepasses.

C）arecalledwheninterestratesincreaseappreciably.

Callablebondsoftenarerefunded（called）wheninterestratesdeclineappreciably.Thecallpriceofthebond（approximatelyparandoneyear'

scouponpayment）declinestoparastimepassesandmaturityisreached.

23.ATreasurybonddueinoneyearhasayieldof5.7%;

aTreasurybondduein5yearshasayieldof6.2%.AbondissuedbyFordMotorCompanyduein5yearshasayieldof7.5%;

abondissuedbyShellOildueinoneyearhasayieldof6.5%.ThedefaultriskpremiumsonthebondsissuedbyShellandFord,respectively,are

A）1.0%and1.2%

B）0.7%and1.5%

C）1.2%and1.0%

D）0.8%and1.3%

Shell:

6.5%-5.7%=.8%;

Ford:

7.5%-6.2%=1.3%.

24.ATreasurybonddueinoneyearhasayieldof4.6%;

aTreasurybondduein5yearshasayieldof5.6%.AbondissuedbyLucentTechnologiesduein5yearshasayieldof8.9%;

abondissuedbyMobildueinoneyearhasayieldof6.2%.ThedefaultriskpremiumsonthebondsissuedbyMobilandLucentTechnologies,respectively,are:

A）1.6%and3.3%

B）0.5%and.7%

C）3.3%and1.6%

D）0.7%and0.5%

Mobil:

6.2%-4.6%=1.6%;

LucentTechnologies:

8.9%-5.6%=3.3%.

25.ATreasurybonddueinoneyearhasayieldof6.2%;

aTreasurybondduein5yearshasayieldof6.7%.AbondissuedbyXeroxduein5yearshasayieldof7.9%;

abondissuedbyExxondueinoneyearhasayieldof7.2%.ThedefaultriskpremiumsonthebondsissuedbyExxonandXerox,respectively,are

Exxon:

7.2%-6.2%=1.0%;

Xerox:

7.9%-6.7%=1.2%.

26.Floating-ratebondsaredesignedto__________