M Finance 3rd Edition Cornett Test

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 Chapter 07

Valuing Bonds

Multiple Choice Questions

1. Which of these statements is false?

A. Bonds are more important capital sources than stocks for companies and governments.

B. Some bonds offer high potential for rewards and, consequently, higher risk.

C. The bond market is larger than the stock market.

D. Bonds are always less risky than stocks.

2. Bonds are issued by which of the following?

A. Corporations

B. Federal government or its agencies

C. State and local governments

D. All of these

3. Which of these statements answers why bonds are known as fixed income securities?

A. Many investors on fixed incomes buy them.

B. Investors know how much they will receive in interest payments.

C. Investors will not receive their principal when the bond's term is up.

D. All of these.

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4. Which of the following is a legal contract that outlines the precise terms between the issuer
and the bondholder?

A. Debenture

B. Enforcement codes

C. Indenture

D. Prospectus

5. Regarding a bond's characteristics, which of the following is the principal loan amount that
the borrower must repay?

A. Call premium

B. Maturity date

C. Par or face value

D. Time to maturity value

6. To compensate the bondholders for getting the bond called, the issuer pays which of the
following?

A. Call feature

B. Call premium

C. Coupon rate

D. Original issue premium

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7. Which of the following determines the dollar amount of interest paid to bondholders?

A. Original issue discount

B. Call premium

C. Coupon rate

D. Market rate

8. Bond prices are quoted in terms of which of the following?

A. Original issue discount

B. Percent of par value

C. Coupon rate in dollars

D. Market rate in dollars

9. Which of the following are main issuers of bonds?

A. U.S. Treasury bonds

B. Corporate bonds

C. Municipal bonds

D. All of these

10. Which of the following statements is true?

A. Interest payments paid to U.S. Treasury bond holders are not taxed at the federal level.

B. Interest payments paid to corporate bond holders are not taxed at the federal level.

C. Interest payments paid to corporate bond holders are not taxed at the state level.

D. Interest payments paid to municipal bond holders are not taxed at the federal level, or by
the state for which the bond is issued.

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11. Which of the following issues Treasury Inflation Protected Securities (TIPS)?

A. U.S. Treasury

B. Corporations

C. Municipalities

D. Nonprofits

12. Which of the following is true regarding U.S. Government Agency Securities?

A. They carry the federal government's full faith and credit guarantee.

B. They do not carry the federal government's full faith and credit guarantee.

C. They are insured by the FDIC.

D. They are treated the same as U.S. Treasury bonds with regard to the federal government's
full faith and credit guarantee.

13. Which of the following is a debt security whose payments originate from other loans, such as
credit card debt, auto loans, and home equity loans?

A. Asset-backed securities

B. Credit quality securities

C. Debentures

D. Junk bonds

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14. Which of the following is NOT a factor that determines the coupon rate of a company's
bonds?

A. The amount of uncertainty about whether the company will be able to make all the
payments.

B. The term of the loan.

C. The level of interest rates in the overall economy at the time.

D. All of these are factors that determine the coupon rate of a company's bonds.

15. Which of the following bonds makes no interest payments?

A. A bond whose coupon rate is equal to the market interest rates

B. A bond whose coupon rates are greater than market interest rates

C. A bond whose coupon rates are less than the market interest rates

D. Zero coupon bond

16. Which of the following is a true statement?

A. If interest rates fall, U.S. Treasury bonds will have decreasing values.

B. If interest rates fall, corporate bonds will have decreasing values.

C. If interest rates fall, no bonds will enjoy rising values.

D. If interest rates fall, all bonds will enjoy rising values.

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17. Which of the following terms means that during periods when interest rates change
substantially, bondholders experience distinct gains and losses in their bond investments?

A. Credit quality risk

B. Interest rate risk

C. Liquidity rate risk

D. Reinvestment rate risk

18. Which of the following terms means the chance that future interest payments will have to be
reinvested at a lower interest rate?

A. Credit quality risk

B. Interest rate risk

C. Liquidity rate risk

D. Reinvestment rate risk

19. Which of the following terms is a comparison of market yields on securities, assuming all
characteristics except maturity are the same?

A. Credit quality risk

B. Interest rate risk

C. Liquidity of interest rate risk

D. Term structure of interest rates

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20. A bond's current yield is defined as:

A. the bond's annual coupon rate divided by the bond's par value.

B. the bond's annual coupon rate divided by the market interest rate.

C. the bond's annual coupon rate divided by the bond's current market price.

D. the bond's annual coupon rate divided by the bond's original issue price.

21. Which of the following is an important advantage to the issuer of a bond with a call
provision?

A. They are able to avoid interest rate risk.

B. They are able to avoid reinvestment rate risk.

C. They are able to reduce their credit risk.

D. They allow for refinancing opportunities.

22. Which of the following is a reason municipal bonds offer lower rates of interest income for
their investors?

A. They are able to avoid interest rate risk.

B. They are able to avoid reinvestment rate risk.

C. They are able to offer reduced credit risk as they are backed by the federal government.

D. They are tax exempt—at least at the federal level.

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23. Which of the following terms is the chance that the bond issuer will not be able to make
timely payments?

A. Credit quality risk

B. Interest rate risk

C. Liquidity of interest rate risk

D. Term structure of interest rates

24. Which of the following bonds carry significant risk that the issuer will not make current or
future payments?

A. Credit quality risk bonds

B. Interest rate risk bonds

C. Liquidity rate risk bonds

D. Junk bonds

25. Interest Payments Determine the interest payment for the following three bonds: 5.5
percent coupon corporate bond (paid semi-annually), 6.45 percent coupon Treasury note, and
a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

A. $5.50, $6.45, $0, respectively

B. $27.50, $32.25, $0, respectively

C. $27.50, $32.25, $100, respectively

D. $55.00, $64.50, $0, respectively

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26. Interest Payments Determine the interest payment for the following three bonds: 2.5
percent coupon corporate bond (paid semi-annually), 3.15 percent coupon Treasury note, and
a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

A. $2.50, $3.15, $0, respectively

B. $12.50, $15.75, $0, respectively

C. $12.50, $15.75, $100, respectively

D. $25.00, $31.50, $0, respectively

27. Interest Payments Determine the interest payment for the following three bonds: 4 percent
coupon corporate bond (paid semi-annually), 4.75 percent coupon Treasury note, and a
corporate zero coupon bond maturing in 15 years. (Assume a $1,000 par value.)

A. $4.00, $4.75, $0, respectively

B. $20.00, $23.75, $0, respectively

C. $20.00, $23.75, $150, respectively

D. $40.00, $47.50, $0, respectively

28. Time to Maturity A bond issued by a corporation on June 15, 2007, is scheduled to mature on
June 15, 2017. If today is December 16, 2008, what is this bond's time to maturity? (Assume
annual interest payments.)

A. 1 year, 6 months

B. 8 years

C. 8 years, 6 months

D. 10 years

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29. Time to Maturity A bond issued by a corporation on May 1, 1999, is scheduled to mature on
May 1, 2019. If today is May 2, 2009, what is this bond's time to maturity? (Assume annual
interest payments.)

A. 9 years

B. 10 years

C. 19 years

D. 20 years

30. Time to Maturity A bond issued by a corporation on October 1, 2007, is scheduled to mature
on October 1, 3007. If today is October 2, 2009, what is this bond's time to maturity? (Assume
annual interest payments.)

A. 2 years

B. 50 years

C. 998 years

D. 100 years

31. Call Premium A 5.5 percent corporate coupon bond is callable in four years for a call
premium of one year of coupon payments. Assuming a par value of $1,000, what is the price
paid to the bondholder if the issuer calls the bond? (Assume annual interest payments.)

A. $55

B. $220

C. $1,000

D. $1,055

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32. Call Premium A 6 percent corporate coupon bond is callable in 10 years for a call premium of
one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the
bondholder if the issuer calls the bond?

A. $60

B. $600

C. $1,000

D. $1,060

33. Call Premium A 4.5 percent corporate coupon bond is callable in five years for a call
premium of one year of coupon payments. Assuming a par value of $1,000, what is the price
paid to the bondholder if the issuer calls the bond?

A. $45

B. $225

C. $1,000

D. $1,045

34. TIPS Interest and Par Value A 2.5 percent TIPS has an original reference CPI of 170.4. If the
current CPI is 205.7, what is the current interest payment and par value of the TIPS?
(Assume semi-annual interest payments and $1,000 par value.)

A. $1,000, $7.16, respectively

B. $1,000, $15.09, respectively

C. $1,207.16, $7.16, respectively

D. $1,207.16, $15.09, respectively

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35. TIPS Interest and Par Value A 3.75 percent TIPS has an original reference CPI of 175.8. If
the current CPI is 207.7, what is the current interest payment and par value of the TIPS?
(Assume semi-annual interest payments and $1,000 par value.)

A. $1,000, $18.75, respectively

B. $1,000, $37.50, respectively

C. $1,181.46, $22.15, respectively

D. $1,181.46, $37.50, respectively

36. Bond Quotes Consider the following three bond quotes; a Treasury note quoted at 87:25, and
a corporate bond quoted at 102.42, and a municipal bond quoted at 101.45. If the Treasury
and corporate bonds have a par value of $1,000 and the municipal bond has a par value of
$5,000, what is the price of these three bonds in dollars?

A. $872.50, $1,000, $1,000, respectively

B. $1000, $1,000, $1,000, respectively

C. $877.81, $1,024.20, $5,072.50, respectively

D. $1,000, $1,024.20, $1,001.45, respectively

37. Bond Quotes Consider the following three bond quotes; a Treasury note quoted at 102:30,
and a corporate bond quoted at 99.45, and a municipal bond quoted at 102.45. If the Treasury
and corporate bonds have a par value of $1,000 and the municipal bond has a par value of
$5,000, what is the price of these three bonds in dollars?

A. $1,002.30, $1,000, $1,000, respectively

B. $1,000, $1,000, $5,000, respectively

C. $1,002.30, $994.50, $5,012.25 respectively

D. $1,029.38, $994.50, $5,122.50, respectively

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38. Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 10 years
if the market interest rate is 6 percent. (Assume semi-annual compounding and $1,000 par
value.)

A. $553.68

B. $558.66

C. $940.00

D. $1,000.00

39. Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in five
years if the market interest rate is 7.50 percent. (Assume semi-annual compounding and
$1,000 par value.)

A. $692.02

B. $696.57

C. $962.50

D. $1,000.00

40. Current Yield What's the current yield of a 6 percent coupon corporate bond quoted at a
price of 101.70?

A. 5.9 percent

B. 6.0 percent

C. 6.1 percent

D. 10.2 percent

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41. Current Yield What's the current yield of a 5.75 percent coupon corporate bond quoted at a
price of 103.05?

A. 5.58 percent

B. 5.75 percent

C. 5.93 percent

D. 17.54 percent

42. Current Yield What's the current yield of an 8.15 percent coupon corporate bond quoted at a
price of 94.30?

A. 4.30 percent

B. 8.01 percent

C. 8.15 percent

D. 8.64 percent

43. Taxable Equivalent Yield What's the taxable equivalent yield on a municipal bond with a
yield to maturity of 3.9 percent for an investor in the 35 percent marginal tax bracket?

A. 1.09%

B. 3.90%

C. 6.00%

D. 11.14%

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44. Taxable Equivalent Yield What is the taxable equivalent yield on a municipal bond with a
yield to maturity of 4.5 percent for an investor in the 39 percent marginal tax bracket?

A. 1.76 percent

B. 4.50 percent

C. 7.38 percent

D. 11.54 percent

45. Credit Risk and Yield Rank the following bonds in order from lowest credit risk to highest
risk all with the same time to maturity, by their yield to maturity: JM Corporate bond with
yield of 12.25 percent, IB Corporate bond with yield of 4.49 percent, TC Corporate bond with
yield of 8.76 percent, and B&O Corporate bond with a yield of 5.99 percent.

A. JM bond, TC bond, B&O bond, IB bond

B. IB bond, B&O bond, TC bond, JM bond

C. TC bond, B&O bond, IB bond, JM bond

D. JM bond, IB bond, B&O bond, TC bond

46. TIPS Capital Return Consider a 2.75 percent TIPS with an issue CPI reference of 184.2. At
the beginning of this year, the CPI was 195.4 and was at 200.5 at the end of the year. What
was the capital gain of the TIPS in dollars?

A. $5.10

B. $11.20

C. $16.30

D. $27.69

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47. TIPS Capital Return Consider a 3.25 percent TIPS with an issue CPI reference of 186.7. At
the beginning of this year, the CPI was 197.5 and was at 202.4 at the end of the year. What
was the capital gain of the TIPS in dollars? (Assume semi-annual interest payments and
$1,000 par value.)

A. $4.90

B. $10.80

C. $15.70

D. $26.25

48. TIPS Capital Return Consider a 3.75 percent TIPS with an issue CPI reference of 183.5. At
the beginning of this year, the CPI was 190.6 and was at 199.4 at the end of the year. What
was the capital gain of the TIPS in percentage terms? (Assume semi-annual interest
payments and $1,000 par value.)

A. 3.75 percent

B. 4.62 percent

C. 7.10 percent

D. 8.80 percent

49. Compute Bond Price Compute the price of a 4.75 percent coupon bond with 15 years left to
maturity and a market interest rate of 6.25 percent. (Assume interest payments are semi-
annual and par value is $1,000.) Is this a discount or premium bond?

A. Discount

B. Premium

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50. Compute Bond Price Compute the price of a 6 percent coupon bond with 10 years left to
maturity and a market interest rate of 8.75 percent. (Assume interest payments are semi-
annual and par value is $1,000.) Is this a discount or premium bond?

A. Discount

B. Premium

51. Bond Prices and Interest Rate Changes A 6 percent coupon bond with 12 years left to
maturity is priced to offer a 6.5 percent yield to maturity. You believe that in one year, the
yield to maturity will be 6.25 percent. What is the change in price the bond will experience in
dollars? (Assume semi-annual interest payments and $1,000 par value.)

A. $19.67

B. $21.55

C. $25.00

D. $41.22

52. Bond Prices and Interest Rate Changes A 5.5 percent coupon bond with 18 years left to
maturity is priced to offer a 6.25 percent yield to maturity. You believe that in one year, the
yield to maturity will be 5.75 percent. What is the change in price the bond will experience in
dollars? (Assume semi-annual interest payments and $1,000 par value.)

A. $25.00

B. $26.89

C. $53.48

D. $80.37

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53. Yield to Maturity A 5.75 percent coupon bond with 12 years left to maturity is offered for
sale at $978.83. What yield to maturity is the bond offering? (Assume interest payments are
paid semi-annually and par value is $1,000.)

A. 3.00 percent

B. 3.09 percent

C. 5.75 percent

D. 6.00 percent

54. Yield to Maturity A 4.25 percent coupon bond with eight years left to maturity is offered for
sale at $983.36. What yield to maturity is the bond offering? (Assume interest payments are
paid semi-annually and par value is $1,000.)

A. 2.25 percent

B. 2.36 percent

C. 4.25 percent

D. 4.50 percent

55. Yield to Call A 7.25 percent coupon bond with 25 years left to maturity can be called in five
years. The call premium is one year of coupon payments. It is offered for sale at $1,066.24.
What is the yield to call of the bond? (Assume that interest payments are paid semi-annually
and par value is $1,000.)

A. 3.41 percent

B. 3.45 percent

C. 3.51 percent

D. 6.90 percent

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56. Yield to Call A 4.75 percent coupon bond with 12 years left to maturity can be called in two
years. The call premium is one year of coupon payments. It is offered for sale at $1037.35.
What is the yield to call of the bond? (Assume that interest payments are paid semi-annually
and par value is $1,000.)

A. 4.60 percent

B. 4.68 percent

C. 4.75 percent

D. 5.05 percent

57. Comparing Bond Yields A client in the 33 percent marginal tax bracket is comparing a
municipal bond that offers a 5 percent yield to maturity and a similar-risk corporate bond that
offers a 6.25 percent yield. Which bond will give the client more profit after taxes?

A. The municipal bond.

B. The corporate bond.

C. Both give the client equal profits after taxes.

D. There is not enough information given to determine.

58. Comparing Bond Yields A client in the 28 percent marginal tax bracket is comparing a
municipal bond that offers a 3.25 percent yield to maturity and a similar-risk corporate bond
that offers a 4.10 percent yield. Which bond will give the client more profit after taxes?

A. The municipal bond.

B. The corporate bond.

C. Both give the client equal profits after taxes.

D. There is not enough information given to determine answer.

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59. Comparing Bond Yields A client in the 35 percent marginal tax bracket is comparing a
municipal bond that offers a 4.25 percent yield to maturity and a similar-risk corporate bond
that offers a 5.10 percent yield. Which bond will give the client more profit after taxes?

A. The municipal bond.

B. The corporate bond.

C. Both give the client equal profits after taxes.

D. There is not enough information given to determine answer.

60. TIPS Total Return Reconsider a 3.25 percent TIPS that was issued with CPI reference of
186.7. The bond is purchased at the beginning of the year (after the interest payment), when
the CPI was 197.5. For the interest in the middle of the year, the CPI was 201.1. Now, at the
end of the year, the CPI is 202.4 and the interest payment has been made. What is the total
return of the TIPS in percentage terms for the year? (Assume semi-annual interest payments
and $1,000 par value.)

A. 1.6 percent

B. 2.4 percent

C. 5.8 percent

D. 9.1 percent

61. Bond Prices and Interest Rate Changes A 6.75 percent coupon bond with 10 years left to
maturity is priced to offer a 6.5 percent yield to maturity. You believe that in one year, the
yield to maturity will be 6.65 percent. If this occurs, what would be the total return of the
bond in percent? (Assume semi-annual interest payments and $1,000 par value.)

A. 5.5 percent

B. 5.6 percent

C. 6.6 percent

D. 6.7 percent

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62. Bond Prices and Interest Rate Changes A 7.25 percent coupon bond with 25 years left to
maturity is priced to offer a 7 percent yield to maturity. You believe that in one year, the yield
to maturity will be 7.15 percent. If this occurs, what would be the total return of the bond in
percent? (Assume semi-annual interest payments and $1,000 par value.)

A. 3.5 percent

B. 5.3 percent

C. 7.0 percent

D. 7.15 percent

63. Yields of a Bond A 3.25 percent coupon municipal bond has 12 years left to maturity and has
a price quote of 98.75. The bond can be called in five years. The call premium is one year of
coupon payments. What is the bond's taxable equivalent yield for an investor in the 35
percent marginal tax bracket? (Assume interest payments are paid semi-annually and a par
value of $5,000.)

A. 3.38 percent

B. 5.00 percent

C. 5.20 percent

D. 10.12 percent

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64. Yields of a Bond A 4.5 percent coupon municipal bond has 10 years left to maturity and has
a price quote of 97.75. The bond can be called in four years. The call premium is one year of
coupon payments. What is the bond's taxable equivalent yield for an investor in the 33
percent marginal tax bracket? (Assume interest payments are paid semi-annually and a par
value of $5,000.)

A. 4.5 percent

B. 4.78 percent

C. 7.13 percent

D. 14.48 percent

65. Bond Ratings and Prices A corporate bond with a 5.75 percent coupon has 15 years left to
maturity. It has had a credit rating of BB and a yield to maturity of 6.25 percent. The firm has
recently gotten more financially stable and the rating agency is upgrading the bonds to BBB.
The new appropriate discount rate will be 6.00 percent. What will be the change in the bond's
price in dollars? (Assume interest payments are paid semi-annually and a par value of
$1,000.)

A. decrease $22.25

B. increase $22.25

C. decrease $23.72

D. increase $23.72

66. Which of the following was the catalyst for the recent financial crisis?

A. Corruption in the investment banking industry.

B. Widespread layoffs due to illegal alien hiring.

C. Defaults on subprime mortgages.

D. All of these were catalysts.

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67. Which of the following is NOT true about EE savings bonds?

A. Interest payments are received annually but are tax deductible.

B. About one in six Americans own a savings bond.

C. These are tax deferred investments.

D. Patriot bonds sell for one-half of their face value.

68. If Zeus Energy bonds are upgraded from BBB- to BBB+, which of the following statements is
true?

A. The current bond price will decrease and interest rates on new bonds issues will increase.

B. Interest rates required on new bond issues will increase.

C. The current bond price will decrease.

D. The current bond price will increase and interest rates on new bonds issues will decrease.

69. A 6.5 percent coupon bond with 12 years left to maturity can be called in four years. The call
premium is one year of coupon payments. It is offered for sale at $1,190.25. What is the yield
to call of the bond? (Assume interest payments are paid semi-annually and par value is
$1,000.)

A. 1.48 percent

B. 2.96 percent

C. 6.5 percent

D. 7.23 percent

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70. A 7.5 percent coupon bond with 16 years left to maturity is offered for sale at $834.92. What
yield to maturity is the bond offering? (Assume interest payments are paid semi-annually and
par value is $1,000.)

A. 4.77 percent

B. 7.5 percent

C. 9.54 percent

D. 10.34 percent

71. An 8 percent coupon bond with 15 years to maturity is priced to offer a 9 percent yield to
maturity. You believe that in one year, the yield to maturity will be 6.5 percent. What is the
change in price the bond will experience in dollars? (Assume annual interest payments and
par value is $1,000.)

A. $163.92

B. $176.15

C. $198.45

D. $215.82

72. Calculate the price of a 6.5 percent coupon bond with 27 years left to maturity and a market
interest rate of 5 percent. (Assume interest payments are semiannual and par value is
$1,000.) Is this a discount or premium bond?

A. $982.03; discount

B. $1,010.59; discount

C. $1,220.93; premium

D. $1,315.62; premium

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73. Calculate the price of a 6.5% coupon bond with 17 years left to maturity and a market interest
rate of 10.5%. (Assume interest rates are semiannual and par value is $1,000.) Is this a
discount or premium bond?

A. $685.93; discount

B. $791.03; discount

C. $1,051.83; premium

D. $1,176.31; premium

74. Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate
is 8.5 percent. (Assume annual compounding and a par value of $1,000.)

A. $90.29

B. $195.62

C. $1,195.62

D. $995.62

75. What is the taxable equivalent yield on a municipal bond with a yield to maturity of 4 percent
for an investor in the 28 percent tax bracket?

A. 2.88 percent

B. 3.87 percent

C. 4.51 percent

D. 5.56 percent

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76. Rank from lowest credit risk to highest credit risk the following bonds, with the same time to
maturity, by their yield to maturity: Treasury bond with yield of 5.55 percent, IBM bond with
yield of 7.95 percent, Trump Casino bond with a yield of 9.15 percent and Banc Ono bond
with a yield of 6.12 percent.

A. Treasury, Trump Casino, Banc Ono, IBM

B. Trump Casino, IBM, Banc Ono, Treasury

C. Treasury, Banc Ono, IBM, Trump Casino

D. Trump Casino, Banc Ono, IBM, Treasury

77. Consider a 4.5 percent TIPS with an issue CPI reference of 187.2. At the beginning of this
year, the CPI was 199.5 and was 213.7 at the end of the year. What was the capital gain of
the TIPS in dollars?

A. $32.73

B. $46.92

C. $62.49

D. $75.85

78. Rank from highest credit risk to lowest credit risk the following bonds, with the same time to
maturity, by their yield to maturity: Treasury bond with yield of 6.55 percent, IBM bond with
yield of 10.95 percent, Trump Casino bond with a yield of 9.15 percent, and Banc Ono bond
with a yield of 9.46 percent.

A. Treasury, Trump Casino, Banc Ono, IBM

B. Banc Ono, Trump Casino, IBM, Treasury

C. Trump Casino, Treasury, Banc Ono, IBM

D. IBM, Banc Ono, Trump Casino, Treasury

7-26
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79. Consider the following bond quote: a municipal bond quoted at 101.25. If the municipal bond
has a par value of $5,000, what is the price of the bond in dollars?

A. $5,089.06

B. $5,050.19

C. $5,062.50

D. $5,109.75

80. A 3.75 percent TIPS has an original reference CPI of 183.9. If the current CPI is 214.7, what is
the current interest payment? (Assume semi-annual interest payments and a par value of
$1,000.)

A. $43.78

B. $37.50

C. $21.89

D. $18.75

81. A 5.125 percent TIPS has an original reference CPI of 191.8. If the current CPI is 188.3, what
is the par value of the TIPS?

A. $981.75

B. $1,018.60

C. $992.75

D. $1,042.95

7-27
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82. A 7.5 percent coupon bond with nine years left to maturity is priced to offer a 10.4 percent
yield to maturity. You believe that in one year, the yield to maturity will be 8 percent. What is
the change in price the bond will experience in dollars? (Assume interest payments are
semiannual and par value is $1,000.)

A. $97.75

B. $101.50

C. $129.25

D. $137.75

83. A 6.75 percent coupon bond with 13 years left to maturity can be called in two years. The call
premium is one year of coupon payments. It is offered for sale at $919.75. What is the yield to
call of the bond? Assume interest payments are paid semi-annually and par value is $1,000.

A. 12.14 percent

B. 7.27 percent

C. 14.54 percent

D. 8.29 percent

84. A 5.5 percent coupon municipal bond has 16 years left to maturity and has a price quote of
92.55. The bond can be called in nine years. The call premium is one year of coupon
payments. Compute the bond's current yield. Assume interest payments are paid semi-
annually and a par value of $5,000.

A. 5.94 percent

B. 11.89 percent

C. 12.19 percent

D. 13.14 percent

7-28
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85. A 5.5 percent coupon municipal bond has 16 years left to maturity and has a price quote of
92.55. The bond can be called in nine years. The call premium is one year of coupon
payments. Compute the bond's yield to maturity and yield to call. Assume interest payments
are paid semi-annually and a par value of $5,000.

A. YTM = 6.91 percent; YTC = 7.52 percent

B. YTM = 6.24 percent; YTC = 7.08 percent

C. YTM = 5.78 percent; YTC = 6.61 percent

D. YTM = 5.92 percent; YTC = 6.85 percent

86. An 8 percent coupon municipal bond has 15 years left to maturity and has a price quote of
98.5. The bond can be called in six years. The call premium is one year of coupon payments.
Compute the bond's yield to call and determine if the bond will be called. Assume interest
payments are paid semi-annually and a par value of $5,000.

A. 4.68 percent; yes, the bond will be called

B. 9.36 percent; yes, the bond will be called

C. 9.36 percent; no, the bond will not be called

D. 10.71 percent; no, the bond will not be called

87. An 8% coupon municipal bond has 15 years left to maturity and has a price quote of 102.0.
The bond can be called in 6 years. The call premium is one year of coupon payments.
Compute the bond's yield to call and determine if the bond will be called. Assume interest
payments are paid semi-annually and a par value of $5,000.

A. 4.31%; yes, the bond will be called

B. 8.62%; yes, the bond will be called

C. 8.62%; no, the bond will not be called

D. 11.21%; no the bond will not be called

7-29
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88. A corporate bond with a 5 percent coupon has 10 years left to maturity. It has had a credit
rating of BBB and a yield to maturity of 8.0 percent. The firm has recently gotten into some
trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount
rate will be 9 percent. What will be the change in the bond's price in dollars? Assume interest
payments are paid semi-annually and par value is $1,000.

A. -$43.61

B. -$51.07

C. -$62.43

D. -$56.31

89. A corporate bond with an 8.5 percent coupon has 10 years left to maturity. It has had a credit
rating of A and a yield to maturity of 10 percent. The firm has recently gotten into some
trouble and the rating agency is downgrading the bonds to BBB. The new appropriate
discount rate will be 11.5 percent. What will be the change in the bond's price in dollars?
Assume interest payments are paid semi-annually and par value is $1,000.

A. -$82.13

B. -$95.19

C. -$101.37

D. -$69.85

90. Junk bonds are those bonds with a credit rating of:

A. BB and lower.

B. B and lower.

C. BBB and lower.

D. None of these.

7-30
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91. Which of following are backed only by the reputation and financial stability of the
corporation?

A. Debentures

B. Unsecured bonds

C. Both a and b

D. None of these

92. Investment grade bonds include those bonds with ratings:

A. from AAA to BB.

B. from AAA to BBB.

C. from AAA to B.

D. from AAA to A.

93. Which of the following statements is correct?

A. Michael Milken pioneered an active high-yield bond market in the late 1970s that provided
much needed capital to entrepreneurs and financial innovators.

B. Prior to Milken, the only junk bonds were those issued by once financially stable firms that
had fallen on hard times.

C. Milken showed investors that, historically, junk bonds rarely defaulted and offered a very
high return to those willing to assume the risk of owning them.

D. All of these statements are correct.

7-31
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94. Which of the following statements is correct?

A. Yield spreads between bonds of different quality remain static over time.

B. Yield spreads are set by the Securities Exchange Commission.

C. Yield spreads between bonds of different quality change over time.

D. None of these statements is correct.

95. Sally is choosing between two bonds both of which mature in 15 years and have the same
level of risk. Bond A is a municipal bond that yields 5.25 percent. Bond B is a corporate bond
that yields 7.75 percent. If Sally is in the 30 percent tax bracket, which bond should she
select and why?

A. Sally should select Bond A because its interest income is not taxable.

B. Sally should select Bond B is better because it has lower risk.

C. Sally should select Bond A because its taxable equivalent yield is greater than the yield of
Bond B.

D. Sally should select Bond B because the taxable equivalent yield of Bond A is less than the
yield of Bond B.

96. Sally is choosing between two bonds both of which mature in 15 years and have the same
level of risk. Bond A is a municipal bond that yields 5.75 percent. Bond B is a corporate bond
that yields 7.75 percent. If Sally is in the 28 percent tax bracket, which bond should she
select and why?

A. Sally should select Bond A because its interest income is not taxable.

B. Sally will be indifferent between Bond A and B since the taxable equivalent yield of Bond A
equals the yield of Bond B.

C. Sally should select Bond A because its TEY is greater than the yield of Bond B.

D. Sally should select Bond B because the TEY of Bond A is less than the yield of Bond B.

7-32
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97. Sally is choosing between two bonds both of which mature in 15 years and have the same
level of risk. Bond A is a municipal bond that yields 7.20 percent. Bond B is a corporate bond
that yields 10.00 percent. If Sally is in the 28 percent tax bracket, which bond should she
select and why?

A. Sally should select Bond A because its interest income is not taxable.

B. Sally will be indifferent between Bond A and B since the taxable equivalent yield of Bond A
equals the yield of Bond B.

C. Sally should select Bond A because its taxable equivalent yield is greater than the yield of
Bond B.

D. Sally should select Bond B because the taxable equivalent yield of Bond A is less than the
yield of Bond B.

98. A bond with 14 years to maturity is selling for $1,070 and has a yield to maturity of 10.06
percent. If this bond pays its coupon payments semi-annually and par value is $1,000, what is
the bond's annual coupon rate?

A. 5.50 percent

B. 8.19 percent

C. 9.57 percent

D. 11.00 percent

99. A bond with 23 years to maturity is selling for $991 and has a yield to maturity of 8.12
percent. If this bond pays its coupon payments semi-annually and par value is $1,000, what is
the bond's annual coupon rate?

A. 7.45 percent

B. 8.03 percent

C. 9.39 percent

D. 10.82 percent

7-33
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100.All of the following items would need to be included in the bond's indenture agreement
EXCEPT:

A. the coupon rate.

B. the call feature.

C. the credit rating.

D. steps that the bondholder can take in the event that the issuer fails to pay the interest or
principal.

101.Which of the following is not a correct statement?

A. Treasury inflation-protected securities have fixed coupon rates.

B. The federal government adjusts the par value of Treasury inflation-protected securities at
the rate of inflation.

C. At maturity, investor in Treasury inflation-protected securities receives an inflation-

adjusted principal amount.

D. All of these statements are correct.

102.Which of the following would NOT be an example of an agency bond?

A. Federal Home Loan Bank bond

B. Student Loan Marketing Association bond

C. Fannie Mae bond

D. Treasury bills

7-34
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103.Which of the following statements is correct?

A. Bonds with short-term maturities will have very little interest rate risk.

B. Bonds with large coupon payments will have very little interest rate risk.

C. Bonds with higher credit ratings will have very little interest rate risk.

D. All of these statements are correct.

104.Which of the following statements is correct?

A. Long-term bonds have more reinvestment rate risk than short-term bonds.

B. Long-term bonds have more interest rate risk than short-term bonds.

C. Short-term bonds with high coupons have high interest rate risk.

D. Zero coupon bonds do not have interest rate risk.

105.Which of the following bonds will have the largest percentage increase in value if interest
rates decrease by 1 percent?

A. 2-year, 5 percent coupon bond

B. 30-year, 10 percent coupon bond

C. 10-year, zero coupon

D. 30-year, zero coupon

7-35
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106.Rank the following bonds, from highest to lowest interest rate risk: 2-year zero coupon, 2-
year 5 percent coupon bond, 30-year 5 percent coupon bond, 30-year, zero coupon bond.

A. 30-year, zero coupon bond, 30-year 5 percent coupon bond, 2-year 5 percent coupon bond,
2-year zero coupon bond

B. 2-year 5 percent coupon bond, 2-year zero coupon bond, 30-year 5 percent coupon bond,
30-year zero coupon bond

C. 30-year, zero coupon bond, 30-year 5 percent coupon bond, 2-year zero coupon bond, 2-
year 5 percent coupon bond

D. 30-year, 5 percent coupon bond, 30-year zero coupon bond, 2-year 5 percent coupon
bond, 2-year zero coupon bond

107.Which of the following statements is correct?

A. All else the same, an investor will require less return to invest in a callable bond than one
that is not callable.

B. All else the same, an investor will require more return to invest in a callable bond than one
that is not callable.

C. The call feature does not impact the return that investors demand.

D. We would need to know the current level of interest rates to answer this question.

108.Under which conditions will an investor demand a larger return (yield) on a bond?

A. The bond issue is upgraded from A to AA.

B. The bond issue is downgraded from A to BBB.

C. Interest rates decrease due to decline in inflation.

D. None of these conditions will cause an increase in the bond's yield.

7-36
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109.Which of the following statements is correct?

A. There is an inverse relationship between bond prices and bond yields.

B. There is a positive relationship between bond prices and bond yields.

C. There is no relationship between bond prices and bond yields.

D. The relationship between bond prices and bond yields is dependent on the market interest
rate.

110.If a bond is selling at a premium, then:

A. its coupon rate must be greater than its yield.

B. its coupon rate must be less than its yield.

C. its coupon rate must be equal to its yield.

D. its coupon rate must be equal to one-half the yield to maturity for a five-year bond.

111.The bond's annual coupon rate divided by its market price is referred to as the:

A. yield to call.

B. yield to maturity.

C. current yield.

D. term structure of interest rates.

112.Possible shapes for the yield include all of the following EXCEPT:

A. humped.

B. downward sloping.

C. flat.

D. All of these are possible shapes.

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113.Possible shapes for the yield curve include all of the following EXCEPT:

A. upward sloping.

B. humped.

C. horizontal line.

D. vertical line.

114.If a bond is selling at a discount, which of the following statements is correct?

A. The current yield must be greater than the coupon rate.

B. The coupon rate must be greater than the yield to maturity.

C. The bond must have a low bond rating.

D. All of these statements are correct.

115.If a bond is selling at par value, which of the following statements is correct?

A. The current yield must equal the coupon rate.

B. The current yield must equal the yield to maturity.

C. Both of these statements are correct.

D. None of these statements is correct.

116.To increase the liquidity for the home mortgage market, Fannie Mae and Freddie Mac
purchased home mortgages from banks and other lenders. They combined the mortgages
into diversified portfolios of loans and issued:

A. trust securities.

B. mortgage-backed securities.

C. current yield securities.

D. Treasury Inflation Protected Securities.

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117.Under what conditions is a bond likely to be called?

A. The firm is in financial duress.

B. The firm is planning a massive expansion and needs to raise a lot of capital.

C. Interest rates have significantly declined.

D. The firm wants to increase its debt ratio.

118.A 30-year bond with an 8 percent coupon has a yield to maturity of 6 percent. The bond could
be called in seven years and if called would generate a yield to call of 5.75 percent. What is
this bond's call premium? Assume the coupon payments are made annually and par value is
$1,000.

A. $219.73

B. $152.64

C. $106.29

D. $301.76

119.A 15-year bond with a 10 percent coupon has a yield to maturity of 8 percent. The bond could
be called in four years and if called would generate a yield to call of 6 percent. What is this
bond's call premium? Assume the coupon payments are made semi-annually and par value is
$1,000.

A. $19.73

B. $81.87

C. $41.20

D. $66.03

7-39
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120.A 5 percent coupon bond has 10 years to maturity and could be called in two years. If the
bond is called, investors will earn 6.2 percent. The call premium is one year of coupon
payments. If coupon payments are made semi-annually and par value is $1,000, what is the
bond's yield to maturity?

A. 2.36 percent

B. 4.72 percent

C. 5.18 percent

D. 6.49 percent

121.A 7 percent coupon bond has 10 years to maturity and could be called in three years. If the
bond is called, investors will earn 5.5 percent. The call premium is one year of coupon
payments. If coupon payments are made semi-annually and par value is $1,000, what is the
bond's yield to maturity?

A. 2.84 percent

B. 3.17 percent

C. 5.38 percent

D. 5.67 percent

122.A 10 percent coupon bond has 15 years to maturity and could be called in two years. If the
bond is called, investors will earn 4 percent. The call premium is one year of coupon
payments. If coupon payments are made annually and par value is $1,000, what is the bond's
yield to maturity?

A. 6.19 percent

B. 6.82 percent

C. 7.65 percent

D. 7.98 percent

7-40
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Essay Questions

123.Describe the relationship between interest rate changes and bond prices.

124.Describe reasons that the U.S. government and corporations would issue bonds.

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125.Explain why high-income and wealthy people are more likely to buy a municipal bond than a
corporate bond.

126.Yields of a Bond A 4.75 percent coupon municipal bond has 20 years left to maturity and has
a price quote of 98.9. The bond can be called in five years. The call premium is one year of
coupon payments. Compute and discuss the bond's current yield, yield to maturity, taxable
equivalent yield (for an investor in the 35 percent marginal tax bracket), and yield to call.
(Assume interest payments are paid semi-annually and a par value of $5,000.)

7-42
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127.Bond Ratings and Prices A corporate bond with a 5.75 percent coupon has 10 years left to
maturity. It has had a credit rating of BBB and a yield to maturity of 6.25 percent. The firm
has recently gotten into some trouble and the rating agency is downgrading the bonds to BB.
The new appropriate discount rate will be 6.75 percent. What will be the change in the bond's
price in dollars and percentage terms? (Assume interest payments are paid semi-annually
and a par value of $1,000.)

128.What does a call provision allow the issuer to do, and why would they do it?

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129.All else equal, which bond's price is more affected by a change in interest rates, a bond with
a large coupon or a small coupon? Why?

130.Explain how investors can assess bond market performance.

131.What actions taken by the Federal Reserve preceded and possibly helped precipitate the
recent financial crisis?

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132.Explain what the indenture agreement states.

133.Explain how mortgage-backed securities work.

134.Provide the definitions of a discount bond and a premium bond. Give examples.

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Another random document with
no related content on Scribd:
 Abb. 13 Die Hoflößnitz Eingang zum
Festsaal
Aufnahme von J. Ostermaier, Dresden-Blasewitz

Der beiden prächtigen, vasengekrönten Majolikaöfen in den

beiden Wohnzimmern sei noch besonders gedacht. Der weiß-grüne
im Zimmer der Kurfürstin zeigt als Verzierung der (weißen) Kacheln
Blumen und Fruchtgehänge, der blau-weiße des Kurfürsten (s.
Abbildung 14) Feuersalamander und Ignis (Feuer) in höchst
eigenartiger Darstellung.
 Abb. 14 Die Hoflößnitz Ofen im
Wohnzimmer des Kurfürsten
Aufnahme von J. Ostermaier, Dresden-Blasewitz

Müde vom vielen Schauen gönnen wir uns eine kurze Rast unter
den alten Kastanien der geräumigen Aussichtsterrasse, die
zwischen dem Hoflößnitzer Herrenhause und dem gemütlichen
Weinschanke liegt, der sich in einem der alten Hofgebäude
eingenistet hat. Zu einem Fläschchen Wein oder wenigstens
Schoppen wäre schon der Durst vorhanden. Ob aber auch die
nötigen Billionen, ohne die heutzutage niemand an so etwas denken
darf? Mag die durstige Kehle dursten! Dafür trinkt das durstige Auge
die Schönheit, die der Blick auf die liebliche Lößnitz zu unsern
Füßen bietet, in vollen Zügen. Ein andrer Blick wieder, als vom
Jakobstein über Wackerbarths Ruhe, die aus der Ferne noch einmal
zu uns freundlich herübergrüßt, aber auch bezaubernd schön in
seiner Art. Der um die Vervollkommnung des Lößnitzer Weinbaus
hochverdiente Johann Paul Knoll, der »erste Winzer der Lößnitz«,
dessen Bild in der Schankstube nebenan von der Wand
herablächelt, durfte schon mit Recht singen:

»Hier steht das Helden-Hauß, das um und um mit Reben

Sehr lieblich ist umschrenckt. Die überschöne Flur,
Die selbsten angelegt die gütige Natur,
Kann keinem Lande nicht im wenigsten nachgeben.

Churfürst Johann Georg der Erste ließ es heben;

Der andre Churfürst drauff, des Reiches Cynosur,
Macht es zur Hofe-Stadt, damit auch hier die Spur
Zu sehen möchte seyn, wie Er vergnügt kann leben.

Ein Landes-Vater muß nicht stets in Sorgen stehn;

Drum hat er es zur Lust gantz fürstlich ausgezieret;
Die schönste Schilderey hat Er da auffgeführet,
Daß mit den Frembden es mög in die Wette gehn.

Viel schöner noch als schön ist es vor Menschen Sinnen,

Ist aber hier sein Wirth, so ist nichts Schöners drinnen.«
 Die Lößnitz und die Dresdner Heide
Von Oskar Merker, Dresden
Wir sind gewöhnt, die Lößnitz stolz das Sächsische Nizza zu
nennen – wir können es mit berechtigtem Stolze! Herrliche Bilder
des sonnigen Südens werden durch dieses eine Wort lebendig; wir
sehen den Blütenreichtum dieses gesegneten Gebietes, seine schier
unerschöpfliche Fruchtbarkeit, seine Weinberge, seine Obstgärten,
die jedem, der sie einmal in vollem Blütenschmucke gesehen hat,
unvergeßlich sein werden. Über diesem glanzvollen Bilde haben wir
aber ganz verlernt, gleichzeitig der bescheideneren Bilder der
Dresdner Heide zu gedenken. Und doch ist die stolze Lößnitz sehr
wohl von der Heide abhängig gewesen – bis in die Gegenwart
herein! Daß das vergessen werden konnte, hat seinen Grund wohl
vor allem darin, daß die jetzt üblichen »Heidekarten« nur um ein
weniges westwärts über die Prießnitz herübergreifen. Die
»Grundkarte von Deutschland« dagegen gibt auf Blatt 417, 443 die
tatsächlichen Verhältnisse: bis weit nach Westen ist hier das Gebiet
der Dresdner Heide zu erkennen, die »Junge Heide« ist mit umfaßt!
Ein im Dresdner Hauptstaatsarchiv aufbewahrtes Forstzeichenbuch
vom Jahre 1571 umgrenzt durch Nennung der Orte, »so umb die
Heyde gelegen,« deren Gebiet: »Nawendorff, Bieschen, Dracha,
Rödebeul, Serckewitz, Ketzschenbroda, Wansdorff, Reichenberg,
Bocksdorff, Wilschdorff, Renes (Rähnitz), Klotzschen, Lausnitz,
Langenbrück« usw. Mathias Oeder hat, etwa im Jahre 1600, ein
entsprechendes Kartenbild gezeichnet.
Eine Wechselwirkung zwischen der Lößnitz und der Dresdner
Heide ist also wohl ohne weiteres anzunehmen. Einige Streiflichter
hierzu!
Bekannt ist, daß die Dresdner Heide eins der Jagdgebiete der
sächsischen Fürsten von jeher gewesen ist. Die Wettiner waren
bemüht, dieses Gebiet immer mehr abzurunden, seinen Wildbestand
auf unvergleichlicher Höhe zu halten. Verzeichnisse der
Jagdergebnisse geben überraschende Einblicke, ebenso Berichte,
wie der von 1687, in dem wir lesen, daß »bey der Hirschfeist 609
Mann … aus 17 Ämbtern … aufgewarttet« haben, die 19 Mann des
Amtes Moritzburg z. B. »vom 13. Julii bis mit den 1. Sept. zusammen
51 Tage …« Die Dörfer, die der Wildbahn angrenzten, waren nicht zu
beneiden! Immer und immer wieder klagen sie über entstandenen
Wildschaden und bitten um Entschädigung. Oft erreichen sie erst
nach langer Zeit, oft nicht einmal ganz ihr Ziel!
Das sind Dinge, die genug bekannt, die aber oft geflissentlich
einseitig scharf beleuchtet worden sind! Haben die Bauern der
Lößnitzdörfer nicht auch um anderes gebeten, als um Ersatz für
erlittenen Wildschaden? Haben sie nicht oft auch Gesuche
eingereicht, sich aus der Heide Holz für ihren Hausbau, für Planken
um ihre Weinberge, Holz für Weinpfähle holen zu dürfen? Haben sie
dies nicht ebenso erhalten, wie die Erlaubnis zum Streurechen, zur
Hutung in der Heide? Aber gleich bringt man den Hinweis auf die
bäuerlichen Gegenleistungen, die bestanden haben in »Sensen- und
Sicheltagen zum Vorwerk Ostra und in Jagddiensten auf Dresdner
Heide«. Warum fragt man nicht danach, was jenen im Winter das
mangelnde Stroh hätte ersetzen können, wenn sie das Laub der
Heide nicht gehabt hätten?! Warum weist man nicht darauf hin, wie
unentbehrlich ihrem Vieh vom Frühjahre bis zum späten Herbste
diese Hutung in der Heide gewesen ist?!
Ich habe durch eine starke Linie auf der eingangs erwähnten
»Grundkarte« (s. Abb. 1) all die Gemeinden – ohne Dresden –
umschlossen, die in der Heide von jenen Rechten Gebrauch
gemacht haben. Oft zum Schaden des Waldes, zum Schmerze der
Oberförster, die sehr wohl erkannten, wie schädlich ihrem Walde
diese Nutzung war!
Eine Bittschrift vom Jahre 1580 möchte ich hier einfügen – nicht,
um Nörglern Stoff zu bieten! Sie betrifft »die Sieben Dorffschafften
Kaditz, Serckwitz, Radebeull, Trachau, Pischenn, Muckten vnd
V̈ bigen«, die, wollten sie ihren Holzbedarf decken, nicht etwa in die
nahe Heide, sondern »in den Tarandischen Waldt« ziehen mußten,
während »etzliche Dorffschafften vber der Elbe In die Dreßdnische
Heide« gewiesen wurden! Noch 1593 ist die Angelegenheit nicht
endgültig geregelt, weil »der her Jegermeister durch den Zeitlichen
thot von dieser welt abgefordert worden«.

Abb. 1 Grundkarte
Details
Geldknappheit ist durchaus keine neuzeitliche Erfindung! Anno
1675 hat ein »Wohlverordtneter Cammer-Juncker, auch Ober Forst
u. Wildtmeister … vor eingelieferte Hirsch Wildts und andere Heuthe
auch Rehe felle und anders (Wölfe sind mehrfach noch genannt!)
noch 496 fl 2 gr an Jägerrechte zu fordern«. Er bittet, wenigstens die
Hälfte ihm zu gewähren – die Forderung betraf die Jahre 1670–
1675!! Treue Dienste müssen aber doch belohnt werden! Ist kein
Geld da, dann eben auf andre Weise! Und so war denn der Kurfürst
auf den Gedanken verfallen, sein Waldgebiet dort zu opfern, wo es
der Wildbahn nicht schädlich war: er verlieh an Stelle vielleicht sehr
dringlicher Gehaltszulagen ein Stück derartigen Heidebodens – als
Weinbergsgelände! Die Karte (Abb. 2) nennt Namen und Stand der
Bedachten: Forstleute und Amtsschreiber, Bürgermeister und
Kammerdiener, alle werden fast gleichmäßig bedacht: zwischen vier
und sechs Ackern schwankt die Größe der »Neuen Weinbergstede«.
Die Karte zeigt übrigens auch, wie der Kurfürst gleichzeitig die
Gelegenheit benutzt hat, sein Heidegebiet abzurunden: »Diesen
Feldwinkl treten die Zwantzig Personen von Rädebeil vnderthenigst
ab! Zu ergäntzung dieser heyden ecken!« lesen wir unter anderem
im nordöstlichen Teile der Karte – sie ist umgekehrt orientiert wie
unsere Karten! Seit 1627 hat sie geruht – zum ersten Male wird sie
hier abgedruckt – im Dresdner Hauptstaatsarchiv fand ich sie (Loc.
38525, Rep. XVIIIa, Dresden 185), eine Zeichnung des Balthasar
Zimmermann, des kursächsischen Markscheiders, des Vetters jenes
berühmteren Mathias Oeder, dessen Heidekarte von 1600 bereits
Erwähnung fand.

Abb. 2 Karte von Balthasar Zimmermann 1627

Zimmermann besaß übrigens auch einen Weinberg in unserem

Gebiete – er hatte ja »dem Hause Sachsen langwierige, treue
Dienste« genug geleistet! »Mit großen vncosten hatte er den Platz
gerodet, mit weinstöcken bestecket vnd eine Mauer von Stein vnd
Plancken darumb geführet. Die Soldaten hatten aber (noch dazu im
Winter!) die Plancken wegkgeholet vnd verbrandt«. In der Nähe
befand sich ein Fleck, den seine Erben 1634 gern gehabt hätten.
Des Vaters Haus hatten sie »schulden halber verkauffen müssen,
vnd des Weinberges aus ermangelung Tüngers konnten sie nicht
mechtig werden«. Auf jenem Heideflecke sollten nun »einbaar Kühe
des Sommers über ihre trifft vndt weyde haben«. Der Fleck lag aber
innerhalb »der allgemeinen huttung«, der er auch verbleiben soll,
das Gesuch muß also abgelehnt werden – 1638 haben es die Erben
noch einmal versucht. Jener Heidefleck reichte »bis an die
Bohmwiese«, so berichtet der Oberforstmeister Bernstein; Balzer
Zimmermanns Erben schreiben: »bis an die Bahnwiese« – und
Oeder? Auf seiner Karte steht: »Am Baum«. Ob nun die
»Bahnwiese« endlich verschwindet und der »Baumwiese« Platz
macht?!
Zimmermanns Karte zeigt noch ein anderes sprachlich so
lehrreiches Beispiel: an der »Meisnischen stras« – der alten! – liegt
»Schneeweisens Bres«, also die Weinpresse des Schneeweiß! In
dem erwähnten Schriftstücke von 1627 wird sie oft zur genaueren
Ortsbestimmung benutzt. Das Gelände muß Hofbedienten zugesagt
haben; sie bewerben sich darum, »damit den Armen Gesellen zu
fortstellung der geringen Heußlichen nahrung vnd beßerer erhaltung
der Kleinen Kinderlein solcher vonn den trotzigen Bauern
außgeschlagener vbriger Platz (er hatte den Serkowitzern zunächst
nicht zugesagt!), der doch sonsten von andernn leuten ausgebeten
werden dürffte, gleich andern Dienern vnd Rentherey Schreiben
gnedigst bewilliget vnd Erblich eingereumt werden möge. Die Zinß
vnd Landsteuer wollen sie Jedesmahl gehorsamblich abstatten …«
Für sie, die Ortsfremden, wird nun auf einmal jene Presse zur
»Weißen Preße im Zippell genant«! Wozu auch »schneeweiß« –
weiß genügt! So mag mancher Name entstanden sein, den wir uns
heute nicht mehr erklären können! –
Streiflichter in Verhältnisse, die jahrhundertelang das Leben der
Bewohner der Lößnitz ganz wesentlich beeinflußt haben!
 Der Untergang des Weinbaus
Von Prof. Dr. A. Naumann
O du weinfrohe Lößnitz! Vor vier Jahrzehnten noch grünten
allüberall deine Rebenhöhen, mostvergnügte Menschen jubelten auf
deinen gartengeschmückten Straßen, und manch »graue« Züge
führten wackere Zecher heimwärts.
Winzerfeste wurden gefeiert, die Tausende natur- und
weinbegeisterter Städter in deine gesegneten Gefilde führten. Das
berühmteste Winzerfest fand statt am 25. Oktober des Jahres 1840.
Es war ein vaterländisches Fest »in Verbindung mit einer Wein- und
Traubenausstellung und Musterung,« wie es in der Denkschrift heißt.
Das Bild des Winzerzuges ist von Prof. Moritz Retzsch entworfen,
und dieses figurenreiche Erinnerungsblatt (Abbildung 1) ist noch in
gar mancher Weinstube, sogar in farbiger Ausführung[2], als
Wandschmuck zu finden.

1
2

4
5

7
 8
Gez. v. M. Retzsch Lith. v. E. Otte. Gedr. v. E. Böhme.
Abb. 1 Winzerzug

Kein Mensch ahnte in den achtziger Jahren des vorigen

Jahrhunderts den Feind, der, an den Wurzeln der Reben saugend,
all dieser Rebenherrlichkeit und Weinfröhlichkeit ein Ende bereiten
sollte. Ein winziger Schnabelkerf »die Reblaus« war unter der
sommerdurchwärmten Erde an der Arbeit; jahrzehntelang hatte sie
sich unbemerkt in das Wurzelwerk des europäischen Weinstockes,
unserer Vitis vinifera eingenistet.
Sie senkte ihre Stechborsten tief hinein in das weiche Gewebe der
Wurzelspitzen und saugte die Bildungssäfte auf (Abb. 2f). Wohl
wehrte sich das Wurzelende und suchte durch Anschwellungen und
hakige Krümmungen (Abb. 2h) den Feind zu überwuchern und zu
erdrücken; aber die Vermehrungskraft der Reblaus war zu gewaltig!
Die Altläuse (Abb. 2d) legten unbefruchtet, als sogenannte Ammen,
mehr denn vierzig Eier, denen nach zehn Tagen schon Jungläuse
(Abb. 2c) entschlüpften, die nach kurzer Saugtätigkeit wiederum
unbefruchtet zur Eiablage fähig waren. Bis zu fünf Generationen
wuchsen in einem Jahre heran, so daß eine einzige Wurzellaus die
Stammutter von etwa dreiundsiebzig Millionen Nachkommen sein
konnte. Da eine so ungeheuere Nachkommenschaft am
Geburtsstocke nicht genügend Nahrung fand, mußte die jugendliche,
ziemlich bewegliche Reblaus neue Nahrungsquellen aufsuchen und
dabei unterirdisch einen mühsamen Weg von Rebstock zu Rebstock
zurücklegen. Im sächsischen Weinbau war zur Vermehrung der
Weinstöcke das sogenannte Senkverfahren üblich: von einem
Mutterstock wurden die Reben niedergebogen und in die Erde
eingegraben, damit die Zweigspitzen, über der Erde hervorragend,
zu neuen Rebstöcken heranwuchsen. Hierdurch wurden für die
wandernden Jungläuse von Stock zu Stock bequeme unterirdische
Brücken geboten, und wir dürfen in den meisten Fällen die rasche
Verheerung der sächsischen Berge auf dieses Senkverfahren
zurückführen. – Mit jedem Karstschlag, mit jedem vom Winzerfuße
weitergetragenen Erdklümpchen verbreitete sich der tückische Feind
über alle Weingelände der Lößnitz, und bald konnte ein Kundiger an
dem Gilben des Stockes, an der nachlassenden Wuchskraft der
Reben, an dem jährlich geringer werdenden Ertrag herausfühlen,
daß dem Weinbau der Lößnitz, ja dem sächsischen Weinbau, eine
Katastrophe drohte. Im Jahre 1885 wurde durch einen Gärtner der
Lößnitz in den Königlichen Weinbergen daselbst die Reblaus
aufgefunden und der sächsischen Regierung darüber pflichtgemäß
Bericht erstattet.
Der damalige Garteninspektor Lämmerhirt, als Vertreter des
Landes-Obstbauvereins wurde mit Feststellung und Untersuchung
des Schädlings betraut, und als die Verseuchung größerer Flächen
durch die Reblaus erwiesen war, wurde der Reichsregierung
Mitteilung gemacht.
Dieselbe ordnete für Sachsen als Reichskommissar den
Oberförster Koch aus Trier ab und verfügte die durch die
internationale Konferenz der weinbautreibenden Staaten
festgesetzten Bekämpfungsmaßregeln. Es zeigte sich nun, daß die
Ausdehnung der Reblausschädigungen in Sachsen bereits einen
großen Umfang angenommen hatte; zumal die königlichen
Weinberge durften infolge ihres starken Befalles als die Herde der
Kalamität betrachtet werden.
Es erregte schon damals großes Erstaunen, daß die
Weinbergsinspektoren nicht vorher auf den schon lange bekannten
furchtbaren Rebfeind aufmerksam geworden waren. Inwieweit einer
oder der andern Behörde, beziehentlich deren Vertretern,
entsprechende Vorhalte zu machen wären, ist jetzt eine müßige
Frage.
 Tatsache war, daß die von Oberförster Koch mit zahlreichen
Hilfskräften und kostspieligen Bekämpfungsmitteln (Petroleum,
Schwefelkohlenstoff) organisierte Abwehr des Schädlings kaum
genügte, um die verseuchten Weinkulturflächen rechts der Elbe
einigermaßen gründlich zu untersuchen, geschweige denn zu retten.
Bereits im Jahre 1886 wurde mit dem Kampf gegen den
übermächtigen Schädling begonnen.
Woher aber war der Feind zu uns gekommen? War er schon seit
Jahrhunderten bei uns heimisch? Fast mußte es so scheinen, wenn
wir die Größe der Verheerung ermessen, welche die Reblaus nicht
bloß bei uns, nein auch in allen Weinbau treibenden Gebieten
Europas[3] angerichtet hatte. Nach allem, was wir bis jetzt
nachprüfen konnten, ist dieser Schädling aus Nord-Amerika zu uns
gelangt. Im Jahre 1865 wurde in der Provence die Reblaus zuerst
auf dem europäischen Kontinent aufgefunden. Sie soll von Amerika
aus in Englands große Weintreibereien gelangt und auf diesem
Umweg auch in die Freilandkulturen des europäischen Festlandes
gekommen sein. Nachdem sie ihren Vernichtungszug in den
südlichen Ländern Europas begonnen, gelangte sie in den achtziger
Jahren des vorigen Jahrhunderts auch zu uns nach Deutschland.
Zum Verständnis der zu schildernden Bekämpfungsmaßnahmen
diene eine kurze Betrachtung der Lebensweise unseres Schädlings.
 Abb. 2 Die Vernichterin des Lößnitzer Weinbaues: die Reblaus (Phylloxera
vastatrix) in ihrer Entwicklung

Im Laufe der bereits erwähnten ungeschlechtlich erzeugten

Generationen traten, vielleicht infolge besonderer Ernährung, mit
Flügelstumpfen begabte Läuse auf, die man auf den schönen
Namen »Nymphen« getauft hat (Abb. 2a). Aus dieser schon mit
einer Art Taille versehenen Form entwickelt sich in warmen
Sommern eine geflügelte Laus: Die Reblausfliege (Abb. 2b). Diese
fliegt bei ruhigem Wetter auf benachbarte Berge und kann, vom
Winde getrieben, Kilometerstrecken zurücklegen. Sie landet
schließlich auf einem Weinblatt und legt dort wenige Eier von teils
runder, teils ovaler Form. Aus diesen erst schlüpfen die eigentlichen
»Geschlechtstiere« (Abb. 2e); aus den kleinen runden die
Männchen, aus den größeren ovalen die Weibchen. Beide
entbehren der Saugorgane, sind also bloße Geschlechtsmaschinen,
die nur dem Geschäfte der Begattung obliegen. Das befruchtete
Weibchen legt ein einziges, etwas dickschaligeres dunkles Winterei.
 Aufnahme von P. Georg Schäfer, Dresden
Abb. 3 Nußbaum in der Hoflößnitz

Es ist kaum anzunehmen, daß es in unseren Breiten oft zur

Ablage dieses Eies kommt, da um diese Zeit die bereits herbstlich
kühlen Nächte das Aufkommen der Geschlechtstiere in Frage
stellen. Wir müssen vielmehr annehmen, daß bei uns eine
Verbreitung nur durch Wanderung oder Verschleppung der
Wurzelreblaus möglich war[4]. Wir wußten nicht einmal mit Sicherheit,
wohin diese Wintereier abgelegt werden, ob an Weinstöcke, an
Rebpfähle oder an die Bäume, welche im Weinberge gepflanzt sind.
In der Lößnitz waren es meist Pfirsiche und Nußbäume. Ist doch das
gute Gedeihen des Nußbaumes (Abb. 3) u. a. ein besonderes
Kennzeichen guter und warmer Weinlagen; auch die Edelkastanie
(Abb. 4) deutet auf solche hin.
Ich mußte trotz allen Dunkels, welches über die Ablage des
Wintereies herrscht, diese Frage berühren, damit gewisse
drakonische Bekämpfungsmaßnahmen, nämlich das Abhauen und
Verbrennen der auf infizierten Bergen stehenden Bäume ihre
Erklärung finden. Haben doch gerade diese Maßregeln unter der
weinbautreibenden Bevölkerung der Lößnitz besonders böses Blut
gemacht, und ich erinnere mich noch mancher Tränen und Flüche,
die gerade der Vernichtung besonders geliebter Bäume galten. Auch
mir hat ebendiese Forderung gar oft meine Pflicht besonders schwer
gemacht.
Die Bekämpfungsmaßnahmen haben im Laufe der Jahrzehnte
manche Wandlung erfahren, eins aber ist sicher, daß sie eine völlige
Vernichtung der Reblaus nicht erreichen konnten!
Es war im Jahre 1886 als ich, an der Dresdner technischen
Hochschule Chemie studierend, durch Zeitungsnotizen darauf
aufmerksam wurde, daß für die Untersuchung reblaus-verseuchter
Gelände Hilfssachverständige gesucht wurden, welche mit der
Handhabung der Lupe vertraut und insektenkundig waren. Da ich
zum Weiterstudium auf Gelderwerb angewiesen war, machte ich
mich eines Tages auf den Weg, mich beim Reichskommissar um die
Stellung eines Hilfssachverständigen zu bewerben. Ich kam damals
zum erstenmal in die herrlichen Gefilde der Lößnitz und war
geradezu entzückt über die harmonische Vereinigung einer
jahrhundertealten, anheimelnden, vornehmen Siedlungskultur mit
einer herrlichen, durch die grünen Höhen der Weingelände
verschönten Natur. In dem Bad-Hotel zu Kötzschenbroda wollte ich
mich bei einem Schoppen Schieler nach dem Aufenthalt des
Reichskommissar Koch erkundigen. Da sah ich – es war
Frühstückszeit – am Nebentisch eine fröhliche Runde, zu welcher,
stürmisch begrüßt, ein jovialer alter Herr trat, eben der gesuchte
Herr Kommissar. Ich stellte mich ihm vor, brachte dreist meinen
Wunsch an, wurde an die frohe Tafelrunde gebeten, und nach etwa
einer Viertelstunde nicht allzu strenger Prüfung ward ich unter
frohem Gläserklingen wohlbestallter Hilfssachverständiger für
Reblausuntersuchungen in der Lößnitz; wohlgemerkt! mit sechs
Mark Tagegeld, für mich eine wertvolle Studienbeihilfe. Meine
Kollegen waren teils Forststudenten, teils Männer mit
landwirtschaftlicher Hochschulbildung, teils Gärtner. Ich habe meine
Stellung als Hilfssachverständiger genügend lange bekleidet, um
aus eigener Erfahrung erzählen zu können, wie sich Untersuchung
und Vernichtung der Weinberge damals vollzog – leider muß ich
sagen »Vernichtung der Weinberge«, denn die Bekämpfung des
Schädlings gelang bei der in der Lößnitz übermächtig auftretenden
und überall verbreiteten Reblaus nicht mehr. Nur wenige Berge
waren damals beinahe reblausfrei; es waren die vortrefflich
gehaltenen von Nacke und Böhme, die auch noch heute einen
Bestand aus jener Zeit – natürlich verjüngt – besitzen.
Die Untersuchung der Weinberge auf Reblaus wurde
folgendermaßen vorgenommen.

Aufnahme von Preusch, Dresden

Abb. 4 Edelkastanie im Grundstück des Herrn
Geheimrat Hilger in Zitzschewig: Haus Kynast
 Die Hilfssachverständigen, geführt von einem Sachverständigen,
etwa vier bis fünf Herren, begaben sich mit je zwei bis drei Arbeitern
(meist Winzern und gelernten Weinbergsarbeitern) in den zu
untersuchendem Weinberg, unter Vorzeigen eines vom Ministerium
des Innern ausgestellten Ausweises.
Ein allgemeiner Überblick über den Rebbestand ließ schon durch
die muldenförmige Abnahme der Wuchskraft und durch
Gelbstichigkeit der sonst tiefgrünen Stöcke einen Schluß auf die
reblausbefallenen Bergteile zu. Der Beweis des Befalls konnte aber
erst dadurch erbracht werden, daß die flach unter der
Bodenoberfläche verlaufenden sogenannten Tauwurzeln durch uns
mit der Lupe auf Anwesenheit von Reblaus geprüft wurden. Die
Arbeiter »schlugen die Stöcke an«, das heißt sie entfernten am
Wurzelhals die Erde bis zum Erscheinen der Wurzeln, schnitten
letztere ab und reichten sie dem Untersuchenden zu. (Abb. 5.)
 Aufnahme von Joh. Hartmann
Abb. 5 Untersuchung der Weinberge auf Reblaus

Dabei wurde reihenweise vorgerückt und möglichst jeder dritte

Stock angeschlagen. Fand sich der Schädling an den hakenförmigen
Krümmungen der Wurzeln, den Nodositäten, vor, was leider nur zu
oft eintrat – so wurde das von uns durch ein kräftig gerufenes
»Laus« verkündet, und ein Arbeiter kalkte den Rebpfahl des
befallenen Stockes oben ausgiebig an. Im Umkreis eines infizierten
Stockes wurde alsdann jeder Stock untersucht, und bald zeigte eine
ganze Anzahl weißer Pfahlspitzen den aufgefundenen Reblausherd
an. In diesen Herd wurden noch die scheinbar gesunden Reben im
Zwanzigmeter-Umkreis einbezirkt, und das Ganze wurde von einer
besonderen Kolonne, die mit pfahl- und drahtbeladenem Wagen
ankam, eingedrahtet und mit einer Verbotstafel versehen, welche
das Betreten des Herdes, auch den Besitzern, versagte. Die