1. A corporate bond is quoted at a current price of 105.776. What is the market price of a bond with a $1,000 face value?

A. $105.77

B. $1050.77

C. $1057.76

D. $1157.76

2. Government Treasury bills are yielding 4.15%. Inflation is 2.75%. What is the real rate of return on this financial asset?

A. 6.90%

B. 7.01%

C. 1.36%

D. 1.40%

3. Calculate the nominal rate of interest given a real rate of 10% and an inflation rate of 6%.

A. 3.77%

B. 16.00%

C. 4.00%

D. 16.60%