1. Zero Coupon Bonds A 6 year maturity zero coupon corporate bond has an 5% promised yield. The bond's price should equal ________

2. A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually. If the current market price is $750, what is the capital gain yield of this bond over the next year?

3. Money Market Yields You buy a $10,000 par 90 day T-bill for $9,940. This bill's bank discount rate quote would be _____.

4.

A benchmark index has three stocks priced at $28, $51, and $61. The number of outstanding shares for each is 375,000 shares, 455,000 shares, and 603,000 shares, respectively. If the market value weighted index was 820 yesterday and the prices changed to $28, $48, and $64, what is the new index value?

5.

Bond Yields Find the promised yield to maturity for a 5% coupon, $1,000 par 10 year bond selling at $935.44. The bond makes semiannual coupon payments.

6.

Market Orders An investor shorted stock that is currently trading at $55.25 a share. She is now worried about taking losses from an unfavorable price move, although she is not yet ready to close out the position. It may make sense for the investor to enter a ______________ order at ______ per share.