5. How would a Eurobond with an annual coupon of 10.5% at a yield to maturity of 10.0% trade? (1 Mark) a. At a premium b. At a discount C. At par d. At face value 6. An investor recently invested $ 100,000 in bonds. What will happen to the value of his asset if interest rate decrease? (2 Marks) a. It will decrease b. It will remain same C. It will increase d. It will be equal to par 7. If a bond with a nominal value of 100, a price of 95 and a coupon of 5.5%, what is the current yield? (Rounding) (2 Marks) a. 6.00% b. 6.23% C. 5.00% d. 5.79% 8. What price do you pay for a 15-year zero coupon bond, with a yield of 5.00%? (3 Marks) a. 50.23 b. 66.89 C. 48.10 d. 55.30 9. A bond has an annual coupon of 6% and a yield of 5% and exactly 5-years left to run. What should be the clean price of the bond. (Rounding) (3 Marks) a. 101.44 b. 104.33 c. 107.80 d. 99.44 I 10. The Macauly, duration of a bond, compared to its modifies duration is: (1 Mark) a. Equal b. Larger c. Smaller d. Sometimes smaller, sometimes equal