1)What is the YTM (yield to maturity) on a 15 yr 5% coupon bond purchased at $1030?

a)Duration is a measure of interest rate sensitivity and a bond with a duration of 9 years should go up 9% if rates go

down 1%. (True/False)

b)U.S. Treasury notes and bonds have no credit spread as they have no risk of default. (True/False)

c) What is the YTM (yield to maturity) on a 15 yr 5% coupon bond purchased at $930?

d) What is the value of a 10 yr 6% coupon bond with a par value of 1,000 if interest rates are 6%?

e)A bond with a 5% coupon has a shorter duration than a bond with a 4% coupon all else equal (True/False)

f)Bonds can only be issued by for-profit companies.(True/False)

g) A bond that matures in 8 years has a shorter duration then a bond that matures in 5 years all else equal. (True/False)

h)What is the value of a 10 yr 6% coupon bond with a par value of 1,000 if interest rates are 5%?