1. you purchased an annual interest coupon bond one year ago with six years remaining to maturity at the time of purchase. The coupon interest rate is 10.00% and par value is $1000. At the time you puchased the bond the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7% your annual total rate of return on holding the bond for that year would have been

a)7% b)8% c)9.95% d)11.95% e)none of these

2. As a taxpayer, in order for you to be indifferent between the after-tax returnds on a corporate bond paying 8.50% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be?

a)33% b)72% c)15% d)28% e) cannot tell from the infromation given

3. Assume you purchased 100 shares of common stock at $50.00 per share using $2500.00 of your own money. The initial margin requirement is 50%. If the maintenance margine is 30%, at what price would you get a margin call?

a)26.14 b)50 c)33.71 d)77.12 e)78.00

4. The present exchange rate is C$=US$0.78. The one-year future rate is C$=US0.76. The yield on a one-year U.S bill is 4.00%. A yeild of ________________ on a one-year Canadian bill will make an investor indifferent between investing in the U.S bill and the Canadian bill.

a)2.40% b)1.30% c)6.40% d)6.70% e) none of these

5.On January 1, the listed spot and futures prices of a Treasury Bond were 93 8/32 and 93 13/32, respectively. You purchased $100000 par value Treasury Bonds and sold one Treasury bond futures contract. One month later, the listed spot and futures prices were 94.00 and 94.09, respectively. If you were to liquidate your position, youre profits would be

a)$500 loss b) $500 profit c)$50 loss d)$5000 loss e) none of these