Business Finance questions

  • A semi-annual coupon bond has an 8.0 percent coupon rate, a $1,000 face value, a current value of $1,021.32 and 5 years until the first call date.  What is the call price if the yield to call is 8.5?
  1. $996
  2. $1085
  3. $985
  4. $1063

 

  • A treasury bond has a face value of $50,000 and a quoted price of 105:15. What is the bond’s dollar price
  1. $51,781.25
  2. $53,242.89
  3. $54,658.92
  4. $52,185.26

 

  • You have an average tax rate of 25 percent and a marginal tax rate of 32 percent. What is your after-tax rate yield on a corporate bond which has a 7.2 percent yield.
  1. 90%
  2. 72%
  3. 43%
  4. 11%

 

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