39.The Note X is best classified as:

1. A Floating Rate Note
2. An Inverse Floater
3. A Reset Note
4. A Step Up Note
5. A Bond Linked Note

40.The Yield to Maturity of the Note X is:

1. 4.20%
2. 4.75%
3. 4.95%
4. 5.13%
5. 5.31%

41.The Duration of the Note X is:

1. 3.5 years
2. 5.6 years
3. 6.5 years
4. 6.9 years
5. 7.1 years

42.The Convexity of the Note X is:

1. 62.1
2. 56.3
3. 54.9
4. 53.7
5. 28.8

Questions 39 through 42 are related and based on the data shown below: A Note, call it Note X, was issued at par on March 15, 2020 and matures on March 15, 2028. Assume today is March 15, 2020. Interest is paid semi-annually on March 15 and September 15 according to the schedule shown below. The coupon rates vary over time but are fixed at the given rates. The next coupon is scheduled for September 15, 2020. 4 6 Year Coupon Dates: Coupon 1 15-Sept-20 15-Mar-21 3.00% 2 15-Sept-21 15-Mar-22 3.50% 3 15-Sept-22 15-Mar-23 4.00% 15-Sept-23 15-Mar-24 4.50% 5 15-Sept-24 15-Mar-25 5.00% 15-Sept-25 15-Mar-26 6.00% 7 15-Sept-26 15-Mar-27 7.00% 8 15-Sept-27 15-Mar-28 8.00%