1. A bond pays a semi-annual coupon and the last coupon was paid 74 days ago. If the annual coupon payment is $65, what is the accrued interest?

A) $13.21

B) $14.12

C) $15.44 D) $16.32

2. The invoice price of a bond that a buyer would pay is equal to

A. the asked price plus accrued interest.

B. the asked price less accrued interest.

C. the bid price plus accrued interest.

D. the bid price less accrued interest.

3. A coupon bond is reported as having an ask price of 108% of the $1,000 par value in the Wall Street Journal. If the last interest payment was made one months ago and the coupon rate is 9%, the invoice price of the bond will be ____________.

A. $1,087.50

B. $1,110.10

C. $1,150.00

D. $1,160.25

4. A coupon bond that pays interest annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The intrinsic value of the bond today will be ______ if the coupon rate is 7%.

A. $712.99

B. $620.92

C. $1,123.01

D. $886.28