1. An analyst gathered the following information about a semiannual coupon bond:

Par $1000

Coupon rate 6%

Maturity 10 years

Current bond price $975

The bond equivalent yield (BEY) and effective yield are closest to:

BEY Effective yield

3.17% 3.24%

BEY Effective yield

3.24% 3.17%

BEY Effective yield

6.44% 6.34%

BEY Effective yield

6.34% 6.44%

2. An analyst gathered the following information about a semiannual coupon bond:

Par $1000

Duration 10

Convexity 25

Current bond price $1100

YTM 10%

If the YTM decrease to 8 percent, the predicted increase in the bonds price is closest to:

$155

$209

$231

$300

3. XYZ Inc. just issued a semiannual bond with 15 years to maturity. The bond is callable, however, after 5 years with a call premium of $90 per bond. Its face value is $1,000, it currently sells for $943.57 and its coupon rate is 8%. The annual yield to call (assuming the bond is called at the end of the fifth year) is closest to:

5.45%

7.74%

10.50%

10.89%

4. The Establishment (payroll) data differs from the Household data in the Employment Report in that the Establishment data provides information regarding:

I. the unemployment rate

II. employment by industry

III. the number of jobs created

IV. those workers that are self-employed