1) Best Western has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in six years, and have a 5 percent coupon. The current price is quoted at 101 (meaning 101% of face value). What is the yield to maturity?

Question 1 options:

	2.32 percent
	4.64 percent
	5.00 percent
	5.13 percent

2) A $1,000 face value bond has a price of $ 940. The bond pays the annual coupon of 65 dollars. What is the coupon rate?

Question 2 options:

	7.56 percent
	3.25 percent
	6.50 percent
	4.89 percent
	6.00 percent

3) AB Builders, Inc. has 12-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest annually and have a yield to maturity of 4.03 percent. What is the coupon rate?

Question 3 options:

	3.75 percent
	4.20 percent
	4.25 percent
	7.50 percent

4) A bond yielded a real rate of return of 4.79 percent for a time period when the inflation rate was 1.96 percent(use approximate form of Fisher Effect), what is the nominal rate of return?

Question 4 options:

	6.55 percent
	6.75 percent
	7.57 percent
	6.84 percent
	7.08 percent

5) Scenic Images paid an annual dividend of $1.85 per share last year. Management just announced that future dividends will increase by 3 percent annually. What is the amount of the expected dividend in year 4?

Question 5 options:

	$1.91
	$1.96
	$2.02
	$2.08