5) Consider a bond with a coupon rate of 7% and a face value of $1,000. Coupons are paid semi-annually. Suppose there are 52 days to the next coupon payment date, beyond which there are 2 years left to maturity (so that there are in total 1+2*2 number of coupon payments left). The bond is currently trading at a YTM of 4%. Assuming a 30/360 day-count convention, what is the bond's full (dirty) price?

6) When buying a bond, an investor pays the clean (or the quoted) price.

a.True

b. False

7)Coupon-bearing Treasury securities pay coupons semi-annually.

a. True

b.False

8) Calculate the full (dirty) price of a bond, assuming the following. Transaction settlement date is July 11th, 2018. Bond maturity date is September 30th, 2020. Coupon rate is 5%, and coupons are paid semi-annually. The bond is trading at a YTM of 8%. The day-count convention is 30/360. Redemption value is 100. Round your answer to the nearest cent (2 decimal places).

9) Consider a corporate bond with a face value of $1,000, 2 years to maturity and a coupon rate of 6%. Coupons are paid semi-annually. The next coupon payment is to be made exactly 6 months from today. What is this bond's price assuming the following spot rate curve.

6-month spot rate: 3%.

12-month: 5%.

18-month: 5.5%.

24-month: 5.8%.

Round your answer to the nearest cent (2 decimal places).

10) Consider a corporate bond with a face value of $1,000, 2 years to maturity and a coupon rate of 5%. Coupons are paid semi-annually. The next coupon payment is to be made exactly 6 months from today. What is this bond's YTM assuming the following spot rate curve.

6-month spot rate: 4%.

12-month: 5%.

18-month: 5.5%.

24-month: 5.8%.

11) What is the current yield of a 6-year Treasury note with a coupon rate of 5%, a face value of $100, and is currently trading at 100:10?