1. Suppose that you bought a 10-year annual coupon bond with 8% coupon rate and a face value of $1000. At that time the YTM was 6-percent. One year later after you received your first coupon payment, you sold the bond when the YTM changed to 4-percent. What was your holding period return?

	6.00%
	13.09%
	20.07%
	22.42%
	None of the above

2. Which of the following is TRUE?

	T-Bills generally yield a higher return than common stocks.
	Long-term corporate bonds generally yield a higher return than common stocks.
	Bonds with higher YTM will sell at a higher market price than otherwise identical bonds with lower YTM.
	The nominal interest rate exceeds the real interest rate when inflation is greater than zero.
	None of the above