1. A bond has a coupon rate of 9% and a par value of $1,000. What is the amount of each individual coupon payment if it is paid annually and semi-annually? Optional Answers: 1. $90 annual coupon payment; $45 semi-annual coupon payment. 2. $90 annual coupon payment; $180 semi-annual coupon payment. 3. $90 annual coupon payment; $90 semi-annual coupon payment.

2. What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid annually, par value of $1,000, and a price of $987.25? Optional Answers: 1. 1.11% 2. 9.99% 3. 10.14% 4. 10.19%

3. What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid semi-annually, par value of $1,000, and a price of $987.25? Optional Answers: 1. 5.09% 2. 5.15% 3. 10.19% 4. 10.29%

4. If a bond has a coupon rate of 4.5% and a YTM of 6%, it will trade Optional Answers: 1. at a discount. 2. at a premium. 3. at par.