1. A corporate bond is quoted at a current price of 97.881. What is the market price of a bond with a $1,000 face value?

A. $908.81

B. $978.81

C. $970.88

D. $907.88

2. Government Treasury bills are yielding 3.88%. Inflation is 2.18%. What is the real rate of return on this financial asset?

A. -1.70%

B. 1.70%

C. 1.66%

D. -1.66%

3. Calculate the nominal rate of interest given a real rate of 7% and an inflation rate of 3%.

A. 14.00%

B. 7.30%

C. 10.21%

D. 10.00%