17. A 37 day Treasury Bill sells for 94 per cent of par. What is the discount yield? a, d [6/100] x [36S/37] b. d [6/100] x [360/37] c. d [6/94] x [365/37] d. d [6/94] x [360/37 18. Two Treasury bonds have the same yield to maturity and the same duration, but different coupon rates and maturities. What else do you know about these bonds? a. The bond with the higher coupon must have the longer maturity. b. The bond with the lower coupon must have the longer maturity. c. The bond with the higher coupon must sell at a premium. d. The bond with the lower coupon must sell at a discount. 19. You have purchased 3 stripped Treasury securities. The maturities are 7, 9, and 11 years; the yield to maturity is 9 per cent for all 3 maturities and each will pay $ 100 at maturity. What is the duration of your portfolio? a. Not more than 8.25 years. b. More than 8.25 years, but not more than 8.5 years. c. More than 8.5 years, but not more than 8.75 years. d. More than 8.75 years. 20. If two bonds have the same yield to maturity, and the same duration, which will have the greater price risk? a. The one with the lower coupon. b. The one with the longer maturity. c. The one with the lower coupon or the one with the longer maturity d. They will have about the same price risk 21. How does the Federal Funds Rate differ from the Discount Rate? a. The discount rate is the rate at which banks borrow from each other; the federal funds rate is the rate at which banks borrow from the Federal Reserve. b. These are two different names for the same thing. c. The discount rate is the yield on Treasury Bills; the federal funds rate is the yield on Treasury Notes or Bonds. d. The federal funds rate is the rate at which banks borrow from each other; the discount rate is the rate at which banks borrow from the Federal Reserve