1. The Pioneer Petroleum Corporation has a bond outstanding with an $60 annual interest payment, a market price of $820, and a maturity date in six years. Assume the par value of the bond is $1,000.
Find.
A. Coupon Rate
B. Current Yield
C. Approx.. Yield to Maturity
D. Exact yield to Maturity
2. You have established the following positions:
Long 500 ABC Nov 1240 Calls @ 5
Long 500 ABC Nov 1205 Puts @ 6
What is the traditional margin requirement?
a. $500,000
b. $550,000
c. $600,000
d. $700,000