Chapter 4 Valuing Bonds Chemistry Worksheet With Answers Page 2
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21FV:1000
PMT: 70
I/Y: 10
N: 10
PV: 815.66
DIF: E
REF: 4.2 Bond Prices and Interest Rates
7. Bavarian Sausage just issued a 10 year 7% coupon bond. The face value of the bond is $1,000 and the
bond makes semiannual coupon payments. If the required return on the bond is 10%, what is the
bond’s price?
a. $815.66
b. $1,000
c. $813.07
d. $1,035.27
ANS: C
FV: 1000
PMT: 70/2
I/Y: 10/2
N: 10*2
PV: 813.07
DIF: E
REF: 4.2 Bond Prices and Interest Rates
8. Bavarian Sausage just issued a 10 year 12% coupon bond. The face value of the bond is $1,000 and the
bond makes annual coupon payments. If the required return on the bond is 10%, what is the bond’s
price?
a. $815.16
b. $1,000
c. $1,122.89
d. $1067.24
ANS: C
FV: 1000
PMT: 120
I/Y: 10
N: 10
PV: 1122.89
DIF: E
REF: 4.2 Bond Prices and Interest Rates
9. Bavarian Sausage just issued a 10 year 12% coupon bond. The face value of the bond is $1,000 and the
bond makes semiannual coupon payments. If the required return on the bond is 10%, what is the
bond’s price?
a. $1,122.89
b. $815.26
c. $1,000.00
d. $1,124.62
ANS: D
FV: 1000
PMT: 120/2
I/Y: 10/2
N: 10*2
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