1.

A bond has a YTM of 6.75%, a modified duration of 14.05 years, a duration of 15 years and a 20 year maturity. By what percentage will the bond's price change if market interest rates decrease by 0.5%?

A.+0.750 percent

B -7.025 percent

C.- 0.750 percent

D+7.025 percent

2. To the nearest dollar , what is the current price of an 8%, 1,000 annual coupon bond that has 4 years to maturity and a yield to maturity of 7.00%

A. $986

B.$ 1,034

C.$1,021

D.$941

3. A 1.000 par value, 2-year annual bond carries a coupon rate of 7%. If the current yield of this bond is 7.995% market price to thr nearest dollar is?

A. $1,150

B. $1,026

C $982

D $965