1. Tom purchases a 10-year bond today for $1050 with $60 annual coupon and $1000 par value. If he plans to hold the bond for the next two years and then sells the bond at the expected interest rate of 2%, what is Tom's expected yield over the next two years?

A. 10.80%

B. 12.55%

C. 15.67%

D. 16.41%

2. A $1000 bond with a coupon rate of 7% matures in three years. The bond is now selling for $950, what is the yield to maturity on the bond?

A. 6.5%

B. 7.2%

C. 9.0%

D. 10.3%

3. What is the duration of a 5-year bond with 10% coupon, annual payment, and $1000 face value that is currently selling at the interest rate of 6%?

A. 4.08 years

B.4.24 years

C. 4.56 years

D. 4.68 years

4. What is the price of a 10-year bond with 10% coupon rates, semi-annual payments, and $1000 par value that is selling at the current interest rate of 6%?

A. $945.67

B. 1021.91

C. 1172.86

D. 1297.55