1. Because of its payment structure, bonds are also know as:

Fixed income

Covenants

Preferred stock

Common stock

None of the above

2. Which one of the following foreign bonds is the actual name of bonds that are traded in the U.S.?

Bulldog bond

Shogun bond

Take-your-money-and-run bond

Yankee bond

All of the above

None of the above

3. How much are you willing to pay for a zero that matures in 10 years, has a face value of $1,000 and your required rate of return is 7%? Round to the nearest cent. Do not include a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)

4. A zero-coupon bond that is currently priced at $456, has a face value of $1,000, and matures in 10 years. What is the yield to maturity of this bond? Round to the nearest hundredth percent. Do not include the percent sign in your answer. (For example, if your answer is 5.67%, type 5.67 without % sign)

5. LLY Corporation is planning to issue a $1,000 face value bond with a maturity of 30 years. The annual coupon rate is expected to be 7.25% and interest payments are expected to be paid semi-annually. If the market is requiring a return of 10% annually on similar bonds, then what should LLY expect to receive for each bond they issue? Round to the nearest cent. Do not a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)