11. Calculate the of of $1000, and maturing matring ie coupon bond with yield to maturity of 8.75 percent, a face value a. $1000 b. $756.43 .$657.44 d. $435.12 e. $875.14 ive years. (Hint: assuming hypothetically annual payment) 2. If the yield to maturity for a par value TIPS bond with eight years to maturity is 3 percent (inflation rate + 3%), and theyieldtomaturity of a US Treasury note with 8 years is 4.25 percent, this implies that a. the b. the c. the expected annual rate of inflation over the next eight years is -2.25 percent expected annual rate of inflation over the next eight years is-1.25 percent. expected annual rate of inflation over the next eight years is 1.25 percent. d. the expected annual rate of inflation over the next eight years is 2.25 percent. e. the expected annual rate of inflation over the next eight years is 0 percent. price of the same is 421 cents per bushel. At maturity, the wheat price is 425 cents per bushel. What is your net gain/loss per bushel? 13. The cash price of wheat today is 410 cents per bushel, and you long the three-month futures a. zero b. 4 cents gain c. 4 cents loss d. only Dr. Liem Nguyen knows 14. Consider a bond with a duration of 6 years having a yield to maturity of 8 percent, and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond? a. 2.88 percent b. 3.45 percent c. -3.89 percent d. -3.45 percent e. -2.88 percent