1. What is a fair purchase price for a zero-coupon bond with 7 years to maturity, a face value of $6,000, and a yield-to-maturity of 9.38%?

(Answer to the nearest $0.01)

2. What is a fair price of a 11-year semi-annual coupon bond, with a coupon rate of 6.4%, a face value of $1000, and a yield-to-maturity of 5.08%?

(Answer to nearest $0.01)

3. What is the yield-to-maturity (YTM) of a 7-year zero-coupon bond with a $87,000 face value that sells for a market price of $47,000?

(Answer to the nearest 0.01%)

4. What is a fair price of a 14-year annual coupon bond, with a coupon rate of 6.41%, a face value of $1000, and a yield-to-maturity of 7.52%?

(Answer to nearest $0.01)

5. A 15-year annual coupon bond trades at a price of $905, has a coupon rate of 10%, and a face value of $1000. What is the yield-to-maturity (YTM) of this bond?

Group of answer choices

None of the others

11.35%

11.10%

11.95%

11.33%

6. Given a series of semi-annual coupon-paying bonds, all having a coupon rate of 5% and a face value of $1000.

When the yield-to-maturity increases from 7% to 10%, which one of the following bonds will exhibit the largest decrease in price?

Group of answer choices

Bond with 3 years to maturity

Bond with 5 years to maturity

Bond with 20 years to maturity

Bond with 10 years to maturity

7. A 20-year semi-annual coupon-paying bond has a face value of $1000, a coupon rate of 7%, and trades at a price of $1100. What can be said about the bond? Choose the best answer from the options below.

Group of answer choices

Bond trades at a premium.

Bond trades at a discount

Bond trades at a discount and has a yield-to-maturity (YTM) above 7%.

Bond trades at a premium and has a yield-to-maturity (YTM) above 7%.

Bond trades at a premium and has a yield-to-maturity (YTM) below 7%.

Bond has a yield-to-maturity (YTM) above 7%

Bond has a yield-to-maturity (YTM) below 7%.

8. A 15-year semiannual coupon bond trades at a price of $905, has a coupon rate of 10%, and a face value of $1000. What is the yield-to-maturity (YTM) of this bond?

Group of answer choices

11.10%

11.95%

11.35%

None of the others

11.33%

9. If the real interest rate is 8% and the inflation rate is 9%, what should be the nominal interest rate?

(Answer to the nearest 0.01%)

10. If the nominal interest rate is 7% and the real rate is understood to be 9%, what is the implied rate of inflation?

(Answer to the nearest 0.01%)

11. If the nominal interest rate is 3% and the inflation rate is 7%, what is the real interest rate?

(Answer to the nearest 0.01%)