2024 – 1 A bond pays 9 yearly interest in semi annual payments for 6 years The current

1. A bond pays 9% yearly interest in semi-annual payments for 6 years. The current yield on similar bonds is 12%. To determine the market value of this bond, you must:
A. find the interest factors (IFs) for 12 periods at 12%.
B. find the interest factors (IFs) for 6 periods at 9%.
C. find the interest factors (IFs) for 12 periods at 6%.
D. find the interest factors (IFs) for 6 periods at 6%.

2. A 15-year bond pays 11% on a face value of $1,000. If similar bonds are currently yielding 8%, what is the market value of the bond? Use annual analysis.
A. Over $1,000
B. Under $1,000
C. Over $1,200
D. not enough information to tell

3. A 10-year bond pays 8% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond? Use annual analysis.
A. Less than $900
B. More than $900 and less than $1100
C. More than $1100
D. not enough information to tell
Customer: replied 1 year ago.

4. A ten-year bond pays 11% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity?
A. 9.33%
B. 7.94%
C. 12.66%
D. 8.10%