a- You own a four-year, 7.0% semiannual coupon corporate bond that has a current annual yield-to-maturity on a semiannual basis of 6.58%. What is this yield converted to a periodicity of one?

a. 53%

b. 58%

c. 68%

d. 69%

b- Your client is considering purchasing a 4-year bond with an 8% coupon, with interest paid annually. Assuming the spot rates below, what price should the client pay for the bond (per 100 of par value)?

Time-to-Maturity	Spot Rates
1 year	2.0%
2 years	2.5%
3 years	3.0%
4 years	4.0%

a. 112.5

b. 114.5

c. 115.1

d. 130.5

c- You are considering purchasing a bond with a 4% coupon rate, semiannual payments, with maturity in 2 years. The required rate of return on the bond is 5%. What is the price of the bond per 100 of par value?

a. 89.4

b. 98.1

c. 101.5

d. 102.1

d- You own a four-year, 7.0% semiannual coupon corporate bond that has a current annual yield-to-maturity on a semiannual basis of 6.58%. What is this yield converted to a periodicity of four?

a. 6.48%

b. 6.53%

c. 6.58%

d. 6.68%

XYZ Corp. Bond
Annual Coupon	8%
Coupon Payment	Semi-Annual
Interest Payment Dates	20 May and 20 November
Maturity Date	20 May 2025
Day-Count Convention	30/360
Annual Yield-to-Maturity	5%

You sell this bond for settlement on August 20, 2019. What is the flat price on settlement date of August 20, 2019 (per 100 of par value)?

a. 112.7

b. 114.8

c. 115.4

d. 116.8

e- You are given the following current forward curve for one-year rates:

Time Period	Forward Rate
0y1y	0.70%
1y1y	1.02%
2y1y	3.84%
3y1y	3.18%
4y1y	3.04%
5y1y	2.87%

What is the price of a two-year, 2.5% coupon bond that has the same risk as the bonds used to obtain the forward rates, (with interest payments paid annually)? NOTE: You must calculate the two-year implied spot rate.

a. 100.0

b. 101.2

c. 102.9

d. 103.2

f- You are given the following current forward curve for one-year rates:

Time Period	Forward Rate
0y1y	0.70%
1y1y	1.02%
2y1y	3.84%
3y1y	3.18%
4y1y	3.04%
5y1y	2.87%

What is the 4-year implied spot rate?

a. 2.1761%

b. 2.7646%

c. 2.9439%

d. 3.5095%

g- You own a zero-coupon bond that matures in 7 years and you are considering selling this bond. The current market discount rate is 5.5% per year, and compounds annually. What price (per 100 of par value) should you sell the bond for?

a. 68.7

b. 69.8

c. 82.7

d. 83.5

h-

XYZ Corp. Bond
Annual Coupon	8%
Coupon Payment	Semi-Annual
Interest Payment Dates	20 May and 20 November
Maturity Date	20 May 2025
Day-Count Convention	30/360
Annual Yield-to-Maturity	5%

You sell this bond for settlement on August 20, 2019. What is the full price this bond will settle at on this date (per 100 of par value)?

a. 112.7

b. 114.8

c. 115.4

d. 116.8

I.

XYZ Corp. Bond
Annual Coupon	8%
Coupon Payment	Semi-Annual
Interest Payment Dates	20 May and 20 November
Maturity Date	20 May 2025
Day-Count Convention	30/360
Annual Yield-to-Maturity	5%

You sell this bond for settlement on August 20, 2019. What is the accrued interest on the settlement date of August 20, 2019?

a. 20

b. 25

c. 40

d. 50