1. A firm has a bond issue with face value of $1,000, 8% coupon rate, and eight years to maturity. The bond makes coupon payments every six months, and is currently priced at $1,055.85. What is the yield to maturity on this bond?

Select one: a. 3.54% b. 6.95% c. 7.07% d. 7.49% e. 14.99%

2. What is the duration of a five-year bond with coupon rate of 8%, yield to maturity of 6%, semi-annual coupon payment, and face value of $1,000?

Select one: a. 3.80 years b. 3.95 years c. 4.20 years d. 4.25 years e. 8.51 years

3.

The yield on a 10-year bond is 6.5%. The 30-day T-bill yield is 3.5%, while the inflation rate is estimated to be 2.5%. What is the real rate of return on the bond based on the exact Fisher Effect formula?

Select one: a. 3.00% b. 3.90% c. 4.00% d. 6.50% e. 9.16%