1. Suppose that you invest in a bond that has a maturity of 5 years and a face value of 10.000 $. The coupon rate is 15% and pays annually. The yield to maturity is 20%. What would be the dirty price at the end of year 3?

a) 10.205,63 $

b) 10.446,76 $

c) 10.736,11 $

d) 11.083,33 $

e) Other:

2. Suppose that you invest in a T-bill with a 90-day maturity and a face value of 1.000 $ selling at a discount of 10%. Assume that 1 year = 360 days. What would be the effective annual return on your investment?

a) 10,66%

b) 2,56%

c) 10,81%

d) 10,38%

e) Other: