1). If a bond provides a real rate of return of 2.89 percent at a time when inflation is 3.21 percent, what is the nominal rate of return on the bond?

A.6.10%

B.6.13%

C.6.16%

D.6.19%

E.6.22%

2).The nominal rate of return on a bond is 7.28 percent while the real rate is 3.09 percent. What is the rate of inflation?

A.4.06%

B.4.28%

C.4.09%

D.4.13%

E.4.17%

3).A bond has a coupon rate of 8.2 percent, a $1,000 par value, matures in 11.5 years, has a yield to maturity of 7.67 percent, and pays interest annually. What is the current yield?

A.7.89%

B.8.21%

C.8.43%

D. 7.67%

E. 8.52%

4).Aivree is buying a $1,000 face value bond at a quoted price of 99.486. The bond carries a coupon rate of 5.6 percent, with interest paid semiannually. The next interest payment is four months from today. What is the clean price of this bond?

A.$994.86

B.$1,004.19

C.$1,013.53

D.$987.21

E.$1,005.73

5)The zero coupon bonds of Mark Enterprises have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.87 percent based on semiannual compounding. How many years is it until this bond matures?

A.11.08 years

B.10.49 years

C.13.77 years

D.12.64 years

E.15.42 years

6)A 12-year, 5 percent coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield rises to 6 percent from the current level of 5.5 percent?

A.-5.28%

B.-4.26%

C.-2.38%

D.1.13%