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1. The Benson bond is a 1% coupon bond with semiannual coupon payments that matures in 22 years. If the TM for this bond is

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1. The Benson bond is a 1% coupon bond with semiannual coupon payments that matures in 22 years. If the TM for this bond is 3.5%, what is the value of the bond? a. $642.55. b. $640.30. c. $620.82. d. $618.65. 2. Arthur is considering purchasing a 12-year bond that is selling for $1,300. What is the current yield for this bond if it has an 8% coupon, paid semiannually? a. 3.08%. b. 4.70%. c. 6.15%. d. 8.00%. 3. Assume that the 1,2,3,5, 10, 20, and 30 year rates were 2%, 2.5%, 3%, 3.4%, 4.2%, 5.0%, and 5.8%, respectively. What type of yield curve is this? . Humped. Normal. Flat. Inverted

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