Finance Fin3300 – Staind, Inc., Has 7 Percent Coupon Bonds On The Market That Have 5 Years

Q1` Staind, Inc. , has 7 percent coupon bonds on the market that have 5 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 10 percent, what is the current bond price?A: $930. 59B: $1,127. 01C: $1,030. 00D: $841. 96E: $886. 28Q2` Grohl Co. issued 11-year bonds a year ago at a coupon rate of 9 percent. The bonds make semiannual payments. If the YTM on these bonds is 6 percent, what is the current bond price?A: $1,450. 32B: $695. 77C: $1,223. 16D : $1,233. 16E: $1,143. 79Q3` Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 10. 6 percent. The bonds make semiannual payments. If these bonds currently sell for 100 percent of par value, what is the YTM?A: 12. 72%B: 5. 30%C: 10. 60%D: 9. 54%E: 11. 66%Q4` Say you own an asset that had a total return last year of 10. 5 percent. If the inflation rate last year was 5 percent, what was your real return?A: 5. 34%B: -4. 98%C: 5. 44%D: 5. 14%E: 5. 24%

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