1,

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

You've been watching the markets and note that the price for the US Treasury 4-year notes, with a coupon rate of 5 5/8%, has risen to $103.90 per $100 face value. Based on this change in price, the yield to maturity is closest to:

	A.	2.2738%.
	B.	4.5476%.
	C.	4.5370%.

2,

A bond selling at a _______________ has a yield to maturity _____________ than its coupon rate.

	A.	premium, higher
	B.	discount, lower
	C.	premium, lower