1) As time progresses (and the maturity date approaches) and yields remain constant, a premium bond's price will a) Increase b) Decrease c) Remain unchanged d) Fluctuate unpredictably e) Approach zero 2) Consider a bond with a par value of $1,000 currently trading at $940. The bond pays a semi-annual coupon of $22.50 ($45 annually). What are the nominal and current yields, respectively? a) 4.5% and 4.5% b) 4.5% and 4.79% c) 3.5% and 4.25% d) 4.79% and 4.5% e) 2.25% and 4.50% related to its term to maturity and 3) The duration of a coupon paying bond is related to its coupon rate. a) Directly, directly b) Directly, inversely c) Inversely, directly, d) Inversely, inversely e) Not, directly