A SIM investment in 90 day commercial paper has a 3% discount yield what is its bond equivalent yed? A Commercial Paper is sold at discount not paying coupon interest. Bond equivalent yield-( a. 1.565% b. 1.815% c. 2.065% d. 2.315% e. 2.565% f. 2.815% 11 12. Following No. 11, the Effective Annual Rate(EAR) of this 90 day commercial paper is 3.065% h. 3315% i. 3565% a. 1.35% b. 1.60% c. 1.85% d. 2.10% e. 2.35% f. 2.60% g, 2.85% h. 3.10% i. 335 13, For a 90 day CD that has a 296 single payment yield, the EAR is ( a. 0.10% b. 0.29% c. 0.5496 d. 0.79% e. 1.04% f. 1.29% g. 1.54% h. 1.79% i. 2.0 14. Consider a four-year bond with a 10 percent coupon paid annually and an 8 percent rate of return (rb). The duration of this bond is ) years. a. 0.500 b. 1.000 c. 1.500 d. 2.000 e. 2.500 f. 3000 g 3.500 h. 4.000 i 4.5 15. Which one of the following is NOT one of the tolls of the Federal Reserves? a. Open market operations b. Change (or set) the discount rate to banks c. change or set the reserve requirement ratios d. Issuing Treasury Bonds to investors 16. When the coupon interest rate is larger than the YTM, the bond is a C. Discount bond d. Par Bond e. James Bond b. Premium bond a. Treasury Bond 17. The term is referred to as the financial market with the maturity date shorter than one year is d. Capital Market c. Derivative Market b. Secondary Market Primary Market Money Market a. 18. Which one is true? a. the higher the coupon payment, the lower t b. the higher the yield to maturity, the lower the bond's duration ratign increases with maturity but at a decreasing rate