A 10-year bond pays an annual coupon. The bond has a yield to maturit

1.You are considering two Treasury bonds. Bond A has a 9 percent annual coupon, and Bond B has a 6 percent annual coupon. Both bonds have a yield to maturity of 7 percent. Assume that the yield to maturity is expected to remain at 7 percent. Which of the following statements is most correct?( )选项： A:If the yield to maturity remains at 7 percent, the price of both bonds will increase by 7 percent per year. B:If the yield to maturity remains at 7 percent, the price of both bonds will increase over time, but the price of Bond A will increase by more. C:If the yield to maturity remains at 7 percent, the price of both bonds will remain unchanged. D:If the yield to maturity remains at 7 percent, the price of Bond A will decrease over time, but the price of Bond B will increase over time. E:If the yield to maturity remains at 7 percent, the price of Bond B will decrease over time, but the price of Bond A will increase over time.

2.Bond A has a 9 percent annual coupon, while Bond B has a 7 percent annual coupon. Both bonds have the same maturity, a face value of $1,000, and an 8 percent yield to maturity. Which of the following statements is most correct? ( )选项： A:Bond A trades at a discount, whereas Bond B trades at a premium. B:If the yield to maturity for both bonds remains at 8 percent, Bond A’s price one year from now will be higher than it is today, but Bond B’s price one year from now will be lower than it is today. C:If the yield to maturity for both bonds immediately decreases to 6 percent, Bond A’s bond will have a larger percentage increase in value. D:All of the statements above are correct. E:None of the statements above is correct.

3.An investor is considering buying one of two bonds issued by Carson City Airlines. Bond A has a 7 percent annual coupon, whereas Bond B has a 9 percent annual coupon. Both bonds have 10 years to maturity, face values of $1,000, and yields to maturity of 8 percent. Assume that the yield to maturity for both of the bonds will remain constant over the next 10 years. Which of the following statements is most correct? ( )选项： A:Bond A has a higher price than Bond B today, but one year from now the bonds will have the same price as each other. B:Bond B has a higher price than Bond A today, but one year from now the bonds will have the same price as each other. C:Both bonds have the same price today, and the price of each bond is expected to remain constant until the bonds mature. D:One year from now, Bond A’s price will be higher than it is today. E:Bond A’s current yield (not to be confused with its yield to maturity) is greater than 8 percent.

4.The Corner Grocer has a 7-year, 6.5 percent semiannual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases to 7.25 percent? 选项： A:The bond price will decrease by 9.27 percent. B:The bond price will increase by 7.04 percent. C:The bond price will decrease by 8.64 percent. D: The bond price will increase by 7.16 percent. E:The bond price will increase by 3.86 percent.

5.You are considering two Treasury bonds. Bond A has a 9 percent annual coupon, and Bond B has a 6 percent annual coupon. Both bonds have a yield to maturity of 7 percent. Assume that the yield to maturity is expected to remain at 7 percent. If the yield to maturity remains at 7 percent, the price of both bonds will increase by 7 percent per year.（）选项： A:对 B:错

6.Which of the following are true for a coupon bond? D.All of the above 选项： A、"When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate." B、The price of a coupon bond and the yield to maturity are negatively related. C、The yield to maturity is greater than the coupon rate when the bond price is below the par value. D、All of the above

7.If a bond's coupon rate is above its yield to maturity, the bond's price is 选项： A、less than its face value. B、greater than its face value. C、equal to its face value. D、equal to the coupon rate divided by the yield.

8.Which of the following statements is most correct? ( ) 选项： A、If a coupon bond is selling at par, its current yield equals its yield to maturity. B、Statements b and c are correct. C、If rates fall after its issue, a zero coupon bond could trade for an amount above its par value. D、If a bond is selling for a premium, this implies that the bond’s yield to maturity exceeds its coupon rate. E、None of the statements above is correct.

9.The yield to maturity for a semiannual-pay, 10 -year corporate bond is 5.25 percent. What is the bond's annual equivalent yield（）选项： A、5.00%. B、5.25%. C、5.32%.

10.A Firm ABC bond has a 8 percent coupon rate and a 100 yuan face value. Interest is paid semiannually, and the bond has 6 years to maturity. If investors require a 10 percent yield, what is the bond’s value?

11.If the yield to maturity decreased 1 percentage point, which of the following bonds would have the largest percentage increase in value? ( )选项： A:A 1-year bond with an 8 percent coupon. B:A 1-year zero coupon bond. C:A 10-year zero coupon bond. D:A 10-year bond with an 8 percent coupon. E:A 10-year bond with a 12 percent coupon.

12.A 10-year Treasury bond has an 8 percent coupon. An 8-year Treasury bond has a 10 percent coupon. Both bonds have the same yield to maturity. If the yields to maturity of both bonds increase by the same amount, The prices of both bonds will increase by the same amount。（）

13.A 10-year Treasury bond has an 8 percent coupon. An 8-year Treasury bond has a 10 percent coupon. Both bonds have the same yield to maturity. If the yields to maturity of both bonds increase by the same amount, The prices of both bonds will increase by the same amount。（）选项： A:对 B:错

14.中国大学MOOC: What is the current yield on a five-year 5% coupon bond with $100 face value? Suppose the bond’s yield to maturity is 7%. Assume annual compounding.

15.Describe the relationships that exist between the coupon rate, the yield to maturity, and the current yield for both a discount bond and a premium bond.

16.What is the current yield on a five-year 5% coupon bond with $100 face value? Suppose the bond’s yield to maturity is 7%. Assume annual compounding. 选项： A、5.26% B、5.36% C、5.46% D、5.56%

17.You are purchasing a 20-year, zero-coupon bond. The yield to maturity is 8.68 percent and the face value is $1,000. What is the current market price?

18. The relationship between a bond's price and the yield to maturity （）选项：changes at a constant level for each percentage change of yield to maturity.B、is an inverse relationship C、is a linear relationship D、is not sure

19.Which of the following statements is FALSE?选项： A:The amount of each coupon payment is determined by the coupon rate of the bond.; B:Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value.; C:The simplest type of bond is a zero-coupon bond.; D:Treasury bills are U.S. government bonds with a maturity of up to one year.

20.Assume a bond is currently selling at par value. What will happen if the bond's expected cash flows are discounted at a rate lower than the bond's coupon rate? () A: The price of the bond will increase. B: The coupon rate of the bond will increase. C: The par value of the bond will decrease. D: The coupon payments will be adjusted to the new discountrate.

21.A bond has an annual modified duration of 7.020 and annual convexity of 65.180. If the bond’s yield- to- maturity decreases by 25 basis points, the expected percentage price change is closest to:选项： A:1.73% B:1.76 C:1.78

22. The yield to maturity on a bond is currently 8.76 percent. The real rate of return is 4.48 percent. What is the rate of inflation? 选项： A: 4.10 percent B: 5.64 percent C: 7.24 percent D: 12.04 percent E: 13.63 percent

23.Which of the following statements about reinvestment risk is least accurate? A. A bond's yield calculation assumes that coupon cash flows and principal can be reinvested at the computed yield to maturity. B. An investor concerned about reinvestment risk is most concerned with a decrease in interest rates. C. A bond investor can eliminate reinvestment risk by holding a coupon bond until maturity.

24.The “second- order” effect on a bond’s percentage price change given a change in yield- to- maturity can be best described as:选项： A:duration B:convexity C:yield volatility