Chapter 7 Assessment - Principles of Business Finance

1 A bond's main characteristics include? Mutple Choice p. @ wormeaoe O mecowonrae (O mepsrvaueoreschbong (O e aste the prncipalwil be pai 2 Determine the semi-annual interest payment for the following three bonds: 4 percent coupon corporate bond, 475 percent coupon Treasury note, and a corporate zero-coupon bond maturing in 15 years. (Assume a $1,000 par value) Multple Choice o (O 540005475050, respecrvely (O 400547550, respecwvely O $2000,$2375, $150, respectively . $2000, $2375, $0, respectively 3 A 45 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments. Assuming a par value of $1000, what s the price paid to the bondholder ifthe issuer calls the bond? Mutple Choice e O s ' @ sios O s O ss 4 A 5125 percent TIPS hes an original reference CPI of 1918. If the current CPIis 188.3, what is the par value of the TIPS? Multple Choice 5 points O s O swoneo O s @ ==

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