1. A 3-year bond with 2 years left to maturity has a coupon rate of 8% paid semi-annually. What is the price of the bond if current market rate is 6%?

1. $1,054.17
2. $1,010.76
3. $1,117.23
4. $1,149.36
5. $1,265.92

2. What is the price of a 6% coupon bond, compounded annually with 4 years to maturity? Assume a current market rate of 9%?

1. $1,103.95
2. $1,000.00
3. $936.60
4. $921.10
5. $902.81

3. Based on the bond price calculated in question 2, what is the duration of bond?

1. 5.25 years
2. 4.25 years
3. 3.45 years
4. 3.65 years
5. 3.75 years

4. If the duration of a bond is 3.25 years and the bond price is currently at $945.65, what would be the change in the price of the bond if interest rates rose by 10 basis points?

1. $ (3.25)
2. $3.25
3. $3.07
4. $(3.07)
5. $(2.91)

5. SafeCo Bank's return on equity for the past year was 10.26%. if the tax management efficiency ratio was .7963, the expense control ratio was .3393 and funds management ratio was 9.634, what was 9.634, what was the assets management ratio?

a) 0.04392

b) 0.03942

c) 0.03492

d) 0.03249

e) cannot be computed based on the information provided