38. Which bond rating change would represent an improvement from junk to "high yield?" a. A change from BB to BBB b. A change from BBB to A c. c. A change from CCC to B d. It's a trick question; "junk" is another name for "high yield." 39. A Treasury bond has a 4 per cent coupon, a current price of $ 98.00, and a $ 100 par value. What is the yield to maturity on this bond? a. $ 2.00/ $ 98.00 b. $4.00/$98.00 c. $ 4.00 $ 100 d. We would have to know the maturity of the bond to calculate the yield to maturity. 40. At 9 per cent annual interest (annual compounding) how long does it take for $ 1 to grow to $ 1,000,000? a. Not more than 161 years. b. More than 161 years but not more than 162 years. c. More than 162 years but not more than 163 years. d. More than 164 years 41. What year was the Federal Reserve created? a. 1873 b. 1913 c. 1916 d. 1942 42. There is a significant bond-rating threshold within the market for junk bonds. Where is it? a. Between AAA and AA. b. Between A and BB. c. Between B and CCC d. Between BB and B