27. Assuming a market discount rate of 4.5%, the full price of a semi-annual bond with a present value (PV) of 102 and 90 days of accrued interest is closest to:

1. 101.955
2. 103.135
3. 104.235

28. The 4.65% semiannual-pay Portage Health Authority bonds have exactly 17 years to maturity and are currently priced to yield 4.39%. Using the full valuation approach, the interest rate exposure (in percent of value) for these bonds, given a75 basis point increase in required yield, is closest to: A. -9.104%. B. -9.031%. C. -8.344%.

4. +8.344%

9. Calculate the modified duration for a 10-year, 12 percent bond with a yield to maturity of 10 percent and a Macaulay duration of 7.2 years.

a.

6.43 years

b.

6.55 years

c.

6.79 years

d.

6.86 years

e.

7.01 years

3. Which duration is computed by discounting flows using the yield to maturity of the bond?

a.	Effective
b.	Macaulay Duration
c.	Modified Duration
d.	Present Value Duration