1) You are considering buying a 4 year, $1000 bond with a 5% annual pay coupon and a 6% YTM. What price should this bond sell for in the market?

A) $1034.56 B) $965.35 C) $926.81 D) $998.84

1b) Continue with the bond from Question 1. It is a 4 year, $1000 bond with a 5% annual pay coupon and a 6% YTM. What is the bond's current or coupon yield?

A) 5.18 % B) 5.36% C) 5.64% D) 5%

Newleaf Travel Company is a new, ultra-low cost airline. One might expect Newleaf to grow very rapidly, causing it to initially reinvest all earnings in new growth. Assume that five years from today, it pays a divident of $2 per share, which is expected to grow 4% per year forever. If investors require a 14% return to hold the common stock, what price per share would you expect to pay?

A) $10.38 B) $20.80 C) $11.84 D) $20

Five years ago you invested $10,000 in a mutual fund. You have earned the following annual returns over the last five years {+18%,-4%,+10%,+22%,-16%}. What is the Arithmetic Mean of the five annual returns?

A) 5% B) 6% C) 3% D) 4%

What is the standard deviation of the sample of the above five returns?

A) 15.8% B) 10.4% C) 12.9% D) 14.1%