Suppose you purchase a 20-year treasury bond with a 6% annual coupon **ten years ago at face value**. Today the bond’s yield to maturity has risen to 8%.

If you sell this bond now (10 years to maturity), at what price can you sell your bond?

The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 6% and that the coupon payments are to be made semiannually. The yield to maturity of this bond is 8% .

How much will each semiannual coupon payment be?

A. | 60 | |

B. | 40 | |

C. | 80 | |

D. | 30 |

Consider the following probability distribution of returns for Alpha Corporation:

Current Stock Price ($) |
Stock Price in One Year ($) |
Return R |
ProbabilityProb(R) |

$35 | 40% | 25% | |

$25 | $25 | 0% | 50% |

$20 | -20% | 25% |

The standard deviation of the return on Alpha Corporation is closest to:

A. | 21.8% | |

B. | 21.5% | |

C. | 22.4% | |

D. | 19.0% |

The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 6% and that the coupon payments are to be made semiannually. The yield to maturity of this bond is 8%

This bond will trade at

A. | Premium | |

B. | Discount | |

C. | Par | |

D. | Face Value |

Get Finance homework help today