28.Suppose that during the year the exchange rate changes from Euro2.7/1 to Euro2.65/1. What are the real costs to a German company of borrowing pounds? And the yield is 16%.

a. 14%

b. 14.85%

c. 13.85%

d. 18%

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27.What is the current yield for a bond that has a par value of $1,000 and a coupon interest rate of 10.95%? The current market price for the bond is $921.01.

a. 11.89%

b. 10.67%

c. 13.4%

d. 8%

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25.The Treasury is selling 91-day T-bills with a face value of $10,000 for $8,800. If the investor holds them until maturity, calculate the yield.

a. 5.46%

b. 5.47%

c. 7.56%

d. 4.57%