A bond pays an annual coupon at a coupon rate of 7.3% and has 4 years to maturity. If the market discount rate is 9.0%, what is the value of the bond (per $100 of face value)?

a.

$94.492

b.

$91.032

c.

$96.552

d.

$95.702

2.

The one-year spot rate is 2.0%, the two-year spot rate is 2.8% and the three-year spot rate is 3.6%. What is the price (per $100 of face value) of a 3-year bond paying a 8.1% annual coupon?

a.

$112.583

b.

$112.824

c.

$116.552

d.

$120.164

3.

A bond makes semi-annual interest payments at a coupon rate of 5.7% per year on 15 January and 15 July each year. What is the accrued interest (per $100 of face value) if the bond changes hands on 25 March 2020?

a.

$1.080

b.

$1.096

c.

$1.086

d.

$1.102

4.

A bond has an Annual Percentage Rate of 3.15%. If it's periodicity is 4, what is it's Equivalent Annual Rate?

a.

3.187%

b.

2.836%

c.

3.587%

d.

3.175%

5.

A bank bill with 47 days to maturity is quoted at a discount rate of 6.85%. What is the value of the security (per $100 of face value) on a discount rate basis? (Assume a 365-day year.)

a.

$99.126

b.

$100.540

c.

$100.556

d.

$99.118