1. An 11% coupon (paid annually) bond, with a 1.000 $ face value and 6 years remaining to maturity. The bond is selling at 1.065 $. What is the yield to maturity?

a) 9,43%

b) 9,53%

c) 9,63%

d) 9,73%

e) Other:

2. Suppose that a bank enters a reverse repurchase agreement in which it agrees to buy central bank funds from one of its correspondent banks at a price of 10.000.000 $, with promise to sell these funds back at a price of 10.000.291,67 $ after 5 days. What is the repo yield? (1 year = 360 days)

a) 0,18%

b) 0,19%

c) 0,20%

d) 0,21%

e) Other:

3. A 1.000 $ par value bond with 7 years left to maturity has a 9% coupon rate paid semiannually and is selling for 945,80 $. What is the yield to maturity?

a) 3,05%

b) 4,05%

c) 5,05%

d) 10,10%

4. A t-bill that is 225 days from maturity is selling for 95.850 $. The t-bill has a face value of 100.000 $. What is the effective annual rate? (1 year=360 days)

a) 6,64%

b) 6,96%

c) 7,02%

d) 7,13%

e) Other:

5. Suppose that you invest in a T-bill with a 90-day maturity and a face value of 1.000 $ selling at a discount of 10%. Assume that 1 year = 360 days. What would be the effective annual return on your investment?

a) 10,66%

b) 2,56%

c) 10,81%

d) 10,38%

e) Other: