1. Today is 7/1/2018. A callable bond with a maturity of 12/31/2024 and a 6% coupon sells for 93.40. The call date is 12/31/2018 and the call price is 102. Which of the statement is true?

1. The bond is likely to be called and the YTC is 8.41%
2. The bond is likely to be called and the YTC is 24.84%
3. The bond is not likely to be called and the YTM is 7.29%
4. The bond is not likely to be called and the YTM is 8.41%

2. You purchased a 5-year, 6% coupon bond with a YTM of 4%. If you sold the bond after receiving the second interest payment and the bond's YTM had changed to 3%, your annual total rate of return on holding the bond for that year would have been

1. 5.00%
2. 5.51%
3. 6.68%
4. 7.57%

3. You are long a put option with a strike price of $50. If the current price of the stock is $40, which of the following statements is true?

1. The option is in-the-money and your gross profit per share is $10
2. The option is out-of-the-money and your gross loss per share is -$10
3. The option is out-of-the-money and your gross profit per share is $10
4. The option is in-the-money and your gross loss per share is -$10