a) What is the realized compound yield (RCY) of a 5-year 6% annual coupon bond priced at 85 assuming reinvestment rate of 5%.

• 6.52%
• 6.62%
• 9.39%
• 9.50%
• 11.33%

b)

Using the data in Question 30, calculate the holding period yield assuming you sold the bond at year 2 (right after receiving your second coupon) at a price of 90.

• 3.98%
• 9.39%
• 9.54%
• 9.71%
• 20.35%

c)

Given the following bond, calculate your dirty purchase price.

Holding period yield (HPY)

Last coupon date pre-purchase	7/15/2016
First coupon date post-purchase	1/15/2017
Purchase price (clean)	90.000
Purchase (settlement) date	10/1/2016
Sale price (clean)	92.000
Sale date	2/10/2022
Coupon rate	5.00%
Coupon	Semi-annual
Convention	30/360

• 88.940
• 88.944
• 90.560
• 91.056
• 91.060