1,

Calculate answers to 6 decimal places before converting to a percentage.

Brian May is considering a corporate bond with the following features: matures in 5 years, has a 4.25% coupon interest rate, and is currently priced at $100.75 per $100 in face value. The yield to maturity is closest to:

	A.	2.0406%.
	B.	2.0413%.
	C.	4.0826%.

2,

Calculate to four decimal places before converting to a percentage.

Several years ago you purchased Calvadas LTD bonds. A recent price quote on the bonds is 92.50. The bonds have 2 1/2 years left to maturity and a coupon rate of 3 3/4%. The yield to maturity at this price is closest to:

	A.	7.08%
	B.	7.13%
	C.	3.54%