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FINA 5320 EXAM 2 2026
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Chocolate and More offers a bond with a coupon rate of 6
percent, semiannual payments, and a yield to maturity of 7.73
percent. The bonds mature in 9 years. What is the market price of
a $1,000 face value bond?
A. $889.29
B. $963.88
C. $1,008.16
D. $924.26
E. $901.86 - correct answer -A. $889.29
Westover's has an outstanding bond with a coupon rate of 5.5
percent that matures in 12 years. The bond pays interest
semiannually. What is the market price of a $1,000 face value
bond if the yield to maturity is 7.13 percent?
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A. $934.59
B. $880.86
C. $870.01
D. $905.92
E. $947.87 - correct answer -C. $870.01
Guggenheim offers a bond with annual payments and a coupon
rate of 5 percent. The yield to maturity is 5.62 percent and the
maturity date is 9 years away. What is the market price of a
$1,000 face value bond?
A. $942.66
B. $868.67
C. $869.67
D. $957.12
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E. $1,009.59 - correct answer -D. $957.12
The Lo Sun Corporation offers a bond with a current market price
of $1,029.75, a coupon rate of 8 percent, and a yield to maturity of
7.52 percent. The face value is $1,000. Interest is paid
semiannually. How many years is it until this bond matures?
A. 8.5 years
B. 8.0 years
C. 9.0 years
D. 17 years
E. 16 years - correct answer -A. 8.5 years
Moon Lite Cafe has a semiannual, 5 percent coupon bond with a
current market price of $988.52. The bond has a par value of
$1,000 and a yield to maturity of 5.68%. How many years is it until
this bond matures?
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A. 1.5 years
B. 1.8 years
C. 2.1 years
D. 2.2 years
E. 1.6 years - correct answer -B. 1.8 years
A firm offers a 10-year, zero coupon bond with a face value of
$1,000. What is the current market price if the yield to maturity is
7.6 percent, given semiannual compounding?
A. $474.30
B. $473.26
C. $835.56
D. $919.12
E. $1,088.00 - correct answer -A. $474.30
FINA 5320 EXAM 2 2026
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Chocolate and More offers a bond with a coupon rate of 6
percent, semiannual payments, and a yield to maturity of 7.73
percent. The bonds mature in 9 years. What is the market price of
a $1,000 face value bond?
A. $889.29
B. $963.88
C. $1,008.16
D. $924.26
E. $901.86 - correct answer -A. $889.29
Westover's has an outstanding bond with a coupon rate of 5.5
percent that matures in 12 years. The bond pays interest
semiannually. What is the market price of a $1,000 face value
bond if the yield to maturity is 7.13 percent?
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A. $934.59
B. $880.86
C. $870.01
D. $905.92
E. $947.87 - correct answer -C. $870.01
Guggenheim offers a bond with annual payments and a coupon
rate of 5 percent. The yield to maturity is 5.62 percent and the
maturity date is 9 years away. What is the market price of a
$1,000 face value bond?
A. $942.66
B. $868.67
C. $869.67
D. $957.12
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E. $1,009.59 - correct answer -D. $957.12
The Lo Sun Corporation offers a bond with a current market price
of $1,029.75, a coupon rate of 8 percent, and a yield to maturity of
7.52 percent. The face value is $1,000. Interest is paid
semiannually. How many years is it until this bond matures?
A. 8.5 years
B. 8.0 years
C. 9.0 years
D. 17 years
E. 16 years - correct answer -A. 8.5 years
Moon Lite Cafe has a semiannual, 5 percent coupon bond with a
current market price of $988.52. The bond has a par value of
$1,000 and a yield to maturity of 5.68%. How many years is it until
this bond matures?
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A. 1.5 years
B. 1.8 years
C. 2.1 years
D. 2.2 years
E. 1.6 years - correct answer -B. 1.8 years
A firm offers a 10-year, zero coupon bond with a face value of
$1,000. What is the current market price if the yield to maturity is
7.6 percent, given semiannual compounding?
A. $474.30
B. $473.26
C. $835.56
D. $919.12
E. $1,088.00 - correct answer -A. $474.30
