1-B

3-A

4-C

how dis they solve it?

1. You buy a bond with a coupon of 3% paid annually at a yield of 3.75%. The bond has a par value of EUR10,000,000. What amount would you expect to receive on the next coupon date? Coupon = 3.1. V=3.75% =lomio a. EUR 150,000 b. EUR 300,000 c. EUR 375,000 d. EUR 187,500 3. You buy a EUR 10,000,000 straight bond with an annual coupon on issue date in the primary market. You buy the bond at par yielding 2.75%. What is the coupon on the bond? a. 2.75% b. 5.50% c. 1.375% d. Not enough information to decide 4. You buy a EUR 5,000,000 5-year zero coupon bond with a semi-annual Yield-to-Maturity of 1.50%. How much interest do you get at the end of year 2? a. USD 150,000 b. USD 300,000 c. USD 0 d. USD 75,000