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12. You just purchased a $1.000 sero coupon bond with a maturity of one year for bond to maturity. What is your return on the

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12. You just purchased a $1.000 sero coupon bond with a maturity of one year for bond to maturity. What is your return on the bood 1.79 31000 (with a yield of 10). Tomorrow, the yield on the bond increases to 12 You hold the 1.10 1.819 d. 120 13. Which of the following is an example of vero compen bonda a. Treasury Note b. Treasury Bood c. Treasury Bill d. Premium Bond 14. You find a $1,000 bond that is currently priced at $1,130 with a maturity of 30 years. The yield to maturity is 8% per year. It pays an annual coupon, but you can't find the coupon rate listed. Based on the given information, what is the coupon care a. 9.15% b. 8.10% c. 8.00% d. 9.05% 15. Which of the following is not a problem with the original Puyback Investment Rule? a. Ignores cash flows after the payback period b. Less accurate for small investment decisions c. Ignores the time value of money d. Lacks an economic reason for its decision criteria

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