9. A corporate bond G, is sold for settlement on 16 June 2018. It is a semi-annual coupon paying bond with 5% coupon rate. It makes coupon payment on April 10th and October 10th each year. The maturity date of bond G is 10/10/2020. What is its full price, accrued interest and clean price on settlement date if it has 4% yield to maturity (30/360 convention)?

10. 2-year $100 par value bond pays 10% monthly coupons is sold at par. Determine its effective

    annual rate.

11. Which security has a higher effective annual interest rate? (a) A four-month T-bill selling at $96.5 with face value of $100. (b) A three-year coupon bond selling at $98 and paying a 10% coupon semi-annually.