KNOWLEDGE CHECK CH 7 AND CH 8

A bond Issued by 3 corporation on June 15, 2017, Is scheduled to mature on June 15, 2027. If today is December 16, 2018, whatIs this bond's time to maturity? (Assume annual Interest payments) Muttple Choic O rrescemons Byears 8 years. 6 months 10years C |@| O A 295 percent TIPS has an origina reference CP of 1802 f the current CPI 15 2051, what s the current nterest payment and par value of the TIPS? (Assume semisnnu inerest payments and $1.000 par value) Muttple Cholca @ o s ey $2950.$1.00000, respectvely 2950, 113818, respactively O O semamn ey O

A 45 percent corporate coupon bond I callable In five years for a call premium of one year of CoUpON payments. ASSUMINg a par value of $1,000, what s the prce paid to the bondholder I the issuer cals the bona? 033 poins awsrdes Muttple Cholca @ s 25 $1085 O O som O q Which of the following are main Issues of bonds? Multile Choice O us ressaysons corporate bonds QO mncwioonss

5 3333 pons awsrded eBook =4 Consider the following three bond quotes; a Treasury note quoted at 10230, and a corporate bond quoted at 99.45, and a municipal bond quoted at 102.45. Ifthe Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5.000, what s the price of these tree bonds In dollars? Muttple Choica O 100230 81000 s1000 specney $1000. $1,000, $5.000, respectvely $1023.00, $99450, $512250. respactvaly O s100230.558450,550235 specay Which of the following was the catalyst for the recent financial crisis? Muttple Cholca O comstonin e maimas e sy widspread layoffs due tllegalallen hfing Al of these choices are correct. O @ e onctorme moones O