64. A $500,000 bond issue sold for $490,000. Therefore, the bonds:
a.Sold at a discount because the stated interest rate was higher than the market rate.
b.Sold for the $500,000 face amount less $10,000 of accrued interest.
c.Sold at a premium because the stated interest rate of was higher than the market rate.
d.Sold at a discount because the market interest rate was higher than the stated rate.
65. For a bond issue that sells for more than the bond face amount, the stated interest rate is:
a.The actual yield rate.
b.The prime rate.
c.More than the market rate.
d.Less than the market rate.
66. For a bond issue that sells for less than the bond face amount, the stated interest rate is:
a.The actual yield rate.
b.The prime rate.
c.More than the market rate.
d.Less than the market rate.
67. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?
a.Both bonds will sell for the same amount.
b.Bond X will sell for more than Bond Y.
c.Bond Y will sell for more than Bond X.
d.Both bonds will sell at a premium.
68. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 9% interest. The current market rate of interest is 8%. Which of the following is correct?
a.Both bonds will sell for the same amount.
b.Bond X will sell for more than Bond Y.
c.Bond Y will sell for more than Bond X.
d.Both bonds will sell at a discount.
69. Seaside issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 12%. What is the issue price of the bond?
a.
$83,920.
b.
$46,320.
c.
$53,605.
d.
$50,000.
70. Seaside issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond?
a.
$83,920.
b.
$46,320.
c.
$54,055.
d.
$50,000.
71. Given the information below, which bond(s) will be issued at a discount?
Bond 1
Bond 2
Bond 3
Bond 4
Stated Rate of Return
5%
7%
12%
10%
Market Rate of Return
7%
8%
12%
9%
a.
Bond 1.
b.
Bond 2.
c.
Bond 4.
d.
Bonds 1 and 2.
72. Given the information below, which bond(s) will be issued at a premium?
Bond 1
Bond 2
Bond 3
Bond 4
Stated Rate of Return
5%
10%
7%
10%
Market Rate of Return
7%
8%
7%
9%
a.
Bond 1.
b.
Bond 2.
c.
Bond 3.
d.
Bonds 2 and 4.
73. Given the information below, which bond(s) will be issued at a discount?
Bond 1
Bond 2
Bond 3
Bond 4
Stated Rate of Return
10%
8%
12%
12%
Market Rate of Return
12%
8%
15%
10%
a.
Bond 1.
b.
Bond 3.
c.
Bonds 2 and 4.
d.
Bonds 1 and 3.
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