Bond Discounting MCQs

MCQs 1-10

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1. Which of the following Debt is unsecured?

Correct! Wrong!

At issue, coupon bonds typically sell _________________?

Correct! Wrong!

The _____________________ is used to calculate the present value of a bond?

Correct! Wrong!

4. Mortgage bonds are secured by real property whose value is generally __________ than that of the value of the bonds issue?

Correct! Wrong!

5. Using semi-annual compounding, a 15-year zero coupon bond that has a par value of $ 1,000 and a required return of 8 % would be priced at approximately ________________?

Correct! Wrong!

6. Market price of the bond changes according to which of the following reasons?

Correct! Wrong!

7. A bond will sell at a discount when __________?

Correct! Wrong!

8. What is the value of 15 % Coupon Bond that has $1,000 Face Value and four years to Maturity that is priced to Yield 10%?

Correct! Wrong!

9. Which of the following statements is most correct?

Correct! Wrong!

10. Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semi-annual interest payments of $40. If you require a 10 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Correct! Wrong!


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Financial Management: Theory and Practice, Dr Eugene F Brigham & C Micheal Ehrhardt

Fundamentals of Financial Management: Concise Edition, Brigham Houston

The Economist Guide to Financial Management, John Tennet

Financial Management: Core Concepts, Raymond M Brooks

1 Comment

  1. Hi there,

    Just wondering if the answers to MCQ material is posted.

    Many thanks.