1.Ingrid has invested $10,000 in a Guaranteed Investment Certificate that promises her 12% per year for the first 5 years and 4% per year for the next 10 years. The interest is compounded annually. At the end of the 15 years, the value of the investment will be closest to which value?

31,721.69

$26,086.96

$32,425.86

$36,372.55

2.

Everything else held constant, the yield-to-maturity (YTM) of a bond __________.

will equal the coupon rate if the bond sells at par value

A and B are both correct

will be lower than the coupon rate if the bond sells below par value

will decrease if the price of the bond increases

3.

The price of a ten-year semi-annual pay bond with a par value of $1,000 and a 7 percent annual coupon and yield to maturity of 8.25 percent is closest to:

900.23

1051.48

949.60

915.99