Addison buys a $10,000 par of a 2 year, 10% semi-annual coupon TIPS.

How much she will receive on the coupon payment date a year from today, assuming the expected inflation rate is 2%?

		500
		510
		1020
		1000

What information do you need to determine the yield of a coupon bond? 28) ______

I) Bond price

II) Coupon rate

III) Par value

IV) Maturity date

V) Yield curve.

		I
		I, II
		I, II, III
		I, II, III, IV
		I, II, III, IV, V

A principal agent problem could potential arise from which of the following relationship?

a) A manager acts on behalf of the shareholders.

b) A fund manager make investment decisions for his/her clients.

c) A bank lends to its clients.

d) A trader works for an investment bank.

		a, b, c, d
		a, b, c
		a, b
		b