14-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter14TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.ThecurrentyieldonabondisequaltoA.annualinterestpaymentdividedbythecurrentmarketprice.B.theyieldtomaturity.C.annualinterestdividedbytheparvalue.D.theinternalrateofreturn.E.Noneoftheoptionsarecorrect.2.Ifa7%couponbondistradingfor$975.00,ithasacurrentyieldofA.7.00%.B.6.53%.C.7.24%.D.8.53%.E.7.18%.3.Ifa7.25%couponbondistradingfor$982.00,ithasacurrentyieldofA.7.38%.B.6.53%.C.7.25%.D.8.53%.E.7.18%.4.Ifa6.75%couponbondistradingfor$1,016.00,ithasacurrentyieldofA.7.38%.B.6.64%.C.7.25%.D.8.53%.E.7.18%.5.Ifa7.75%couponbondistradingfor$1,019.00,ithasacurrentyieldofA.7.38%.B.6.64%.C.7.25%.D.7.61%.E.7.18%.6.Ifa6%couponbondistradingfor$950.00,ithasacurrentyieldofA.6.5%.B.6.3%.C.6.1%.D.6.0%.E.6.6%.7.Ifan8%couponbondistradingfor$1,025.00,ithasacurrentyieldofA.7.8%.B.8.7%.C.7.6%.D.7.9%.E.8.1%.14-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.8.Ifa7.5%couponbondistradingfor$1,050.00,ithasacurrentyieldofA.7.0%.B.7.4%.C.7.1%.D.6.9%.E.6.7%.9.Acouponbondpaysannualinterest,hasaparvalueof$1,000,maturesinfouryears,hasacouponrateof10%,andhasayieldtomaturityof12%.ThecurrentyieldonthisbondisA.10.65%.B.10.45%.C.10.95%.D.10.52%.E.Noneoftheoptionsarecorrect.10.Acouponbondpaysannualinterest,hasaparvalueof$1,000,maturesinfouryears,hasacouponrateof8.25%,andhasayieldtomaturityof8.64%.ThecurrentyieldonthisbondisA.8.65%.B.8.45%.C.7.95%.D.8.36%.E.Noneoftheoptionsarecorrect.11.Acouponbondpaysannualinterest,hasaparvalueof$1,000,maturesin12years,hasacouponrateof11%,andhasayieldtomaturityof12%.ThecurrentyieldonthisbondisA.10.39%.B.10.43%.C.10.58%.D.11.73%.E.Noneoftheoptionsarecorrect.12.Acouponbondpaysannualinterest,hasaparvalueof$1,000,maturesin12years,...
