chapter 7 practice

Charles owns a reverse convertible bond. At maturity, the principal amount will be repaid in:
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Medina Builders wants to raise $31.3 million to expand its business. To accomplish this, it plans to sell 15-year, $1,000 face value zero coupon bonds. The bonds will be priced to yield 5.75 percent. What is the minimum number of bonds it must sell to raise the money it needs? Assume semiannual compounding.
The $1,000 par value bonds of Delgado, Incorporated, have a coupon rate of 6.5 and a current price quote of 101.23. What is the current yield?The semiannual, 8-year bonds of Blum and Blum are selling at par and have an effective annual yield of 8.6285 percent. What is the amount of each interest payment if the face value of the bonds is $1,000?Buxbaum Corporation is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds will mature in 10 years and will be sold at par. Given this, which one of the following statements is correct?Stoessel, Incorporated, issued 20-year bonds 3 years ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If these bonds currently sell for 91.4 percent of par value, what is the YTM?Which one of the following statements concerning bond ratings is correct?Four years ago, Lallana Properties issued $1,000 par value, 7-year bonds. Today, the bonds are yielding 8.27 percent per year. The annual inflation rate is 2.24 percent. What is the real rate of return on the bonds?Which one of the following statements is correct?The Fisher effect primarily emphasizes the effects of ________ on an investor's rate of return.A Treasury yield curve plots Treasury interest rates relative to:The taxability risk premium compensates bondholders for which one of the following?