An investor purchases a bond at a price above par value. Two years later, the investor sel

A U.S. investor has purchased a tax-exempt 10-year municipal bond at a yield of 3.75% which is 100 basis points less than the yield on a 10-year option-free U.S. Treasury. If the investor’s marginal tax rate is 33.5%, then taxable equivalent yield and the yield ratio is closest to:

Taxable equivalent yield Yield ratio

A. 7.14 0.79

B. 5.64 0.79.

C. 5.64 1.19.

An investor purchases a 5% coupon bond maturing in 15 years for par value. Immediately after purchase, the yield required by the market increases. The investor would then most likely have to sell the bond at:

A.par.

B.a discount.

C.a premium.

An investor purchases one municipal(市政债券) and one corporate bond that pay rates of return of 8% and 10% respectively. If the investor is in the 15% tax bracket, his after tax rates of return on the municipal and corporate bonds would be respectively

A)6.4% and 8%;

B)6.8% and 10%;

C)8% and 8.5%;

D)8% and 10%

An investor is evaluating a set of bonds from which he will select two issues. The investor’s objective is to find bonds with cash flows that will precisely match a known stream of future obligations. Which of the following two issues willmost likely to meet the investor’s objective?

A. A putable bond and a floating-rate bond.

B. A mortgage-backed security and a convertible bond.

C. A zero-coupon bond and a Treasury strip.

Tapper, Inc. has two $1,000 par value bonds outstanding that both sell for 758.18. The first issue has 15 years to maturity and an annual coupon of 6%. The second issue has the same yield to maturity as the first one, pays annual interest as well, but has only 5 years remaining till maturity. The annual interest payment on the second issue is closest to:

A. $25.23.

B. $27.83.

C. $29.46.

Consider a $100 par value bond. It has a 6% coupon paid annually and 10 years to maturity. The bond is valued at $102.08 today with a discount rate of 5.5%. One day later, the discount rate increases to 6.5%. Assuming the discount rate remains at 6.5% over the remaining life of the bond, the price of the bond between today and maturity will most likely:

A. Decline then remain unchanged.

B. Decline then rise.

C. Rise then decline.

Bond Features, Inc.(“BFI”) has bonds outstanding with a $900,00 par value.The BFI bonds pay a 4.5% coupon, mature in three years, and have net book value of $785,000.The bonds are convertible into 20,000 shares of common stock, with a $1 par value.The current market value of the common shares is $62.50.Under U.S.GAAP, the amount that will be recorded as additional paid-in capital if the bonds are immediately converted is closest to:

A.$115,000.

B.$765,000.

C.$1,250,000.

An 8% coupon, $100 par value bond matures in 2 years and is selling at $98.79 to yield 8 percent. One year ago this bond was sold at a price of $97.02 to yield 9 percent. The bond pays interest annually. The change in price attributable to the change in maturity is closest to:

A. 4.97.

B. 3.21.

C. 1.22.

An investor sells a bond at the quoted price of

$98.00. In addition he receives accrued interest of $4.40. The clean price of the bond is:

A. Par value plus accrued interest.

B. accrued interest plus agreed upon bond price.

C. agreed upon bond price excluding accrued interest.

A、2.78

B、2.86

C、5.56

D、空