A 12-year annual payment corporate bond has a market price of $925. It pays annual interest of $60 and its required rate of return is 7 percent.

By how much is the bond mispriced?

		-1.51%
		-1.26%
		-1.01%
		-0.76%
		-0.51%
		-0.26%
		-0.01%
		0.24%
		0.48%

#2

Consider a bond with two year remaining to maturity, a $1,000 face value, an 8 percent coupon rate (paid annually),

and an interest rate (either required rate of return or yield to maturity) of 10 percent.

How much is the modified Duration of the bond in years?

		1.55
		1.65
		1.75
		1.85
		1.95
		2
		2.01
		2.11
		3
		4