1)"A Treasury bond matures on August 15, 2032. Its coupon rate is 2.50% and face value is $100. Its price is 99.64. How much is its current yield to maturity on April 3, 2020?"

a)2.53 b)2.5 c)2.51 d)2.6

2)A Treasury note matures in 20 years. Its coupon rate is 4.50% and face value is $100. Its yield 4.60. How much is its Price? Hint use today?s date as SDT and same date 20 years from now.

a)98.5 b)98.7 c)98.8 d)99

3)The bond measure that tells you the percentage change in bond price for a given size change in yield is called?

a)Current yield b)Modified yield c)Modified price d)Modified duration

4) A bond has a modified duration of 6.25. The yield is expected to rise by 1% over the next two days. How much should the bond price change?

a)rise by 7.46% b)rise by 6.25% c)fall by 8.30 % d)fall by 6.25%

5)A bond has a modified duration of 9.95. The yield is expected to fall by 0.75% over the next few days. How much should the bond price change?

a)rise by 7.46% b)rise by 6.25% c)fall by 7.46% d)fall by 6.25%