Reference no: EM132922416

Questions -

Q1- A promissory note has a face value of $700, is trading at a yield of 8% p.a. and has 132 days until it matures. What is the price of the security?

a. $679.77

b. $680.32

c. $684.82

d. $678.47

Q2- A 90-day bank bill was issued 38 days ago, has a face value of $300, and is trading at a price of $297.88. What is the current yield of the security?

a. 5%

b. 4%

c. 3%

d. 6%

Q3- A zero-coupon bond had 13 years to maturity when it was issued 6 years ago. It has a face value of $300 and is currently trading at a price of $279.89. What is the yield to maturity of the bond?

a. 1.90%

b. 1.00%

c. 0.22%

d. 1.29%

Q4- What is the value of a bond with a face value of $600, 6 years to maturity and an annual coupon paid at a coupon rate of 7%, if it is trading at a yield of 7% p.a.?

a. $602.46

b. $598.58

c. $600.00

d. $603.45

Q5- What is the value of a bond with a face value of $500, 6 years to maturity and a quarterly coupon paid at a coupon rate of 8%, if it is trading at a yield of 3% p.a.?

a. $636.81

b. $637.00

c. $638.38

d. $635.43