An investor purchases a bond at par $($$$1,000)$ and is planning to hold it to maturity, which is in $20$ years. The bond has a coupon of $4\%,$ and makes semi$-$annual payments. If the investor is planning to invest the coupon payments into a money market yielding $2\%,$ what is the Realized Compound Yield $($RCY$)$ if the investor holds to maturity and the money market rate remains constant over the next $20$ years?

Make your selection:

XYZ bond matures in $28$ years at $$1,000,$ carries a $4\mathrm{.}4\%$ coupon, paid semi$-$annually, and

comparable bonds are yielding $4\mathrm{.}6\%.$ What is the modified duration of the bond?

A$.13\mathrm{.}75$ years

B$.14\mathrm{.}97$ years

C$.15\mathrm{.}80$ years

D$.16\mathrm{.}20$ years

Make your selection:

If the market rate of interest increase from $4\mathrm{.}6\%$ to $5\mathrm{.}1\%,$ approximately, what percentage

in price will the $xYZ$ bond $($refer to #$3)$ fall?

A$.$

A$.6\mathrm{.}88\%$

B$.$

B$.7\mathrm{.}49\%$

C$.$

C$.7\mathrm{.}90\%$

D$.$

D$.8\mathrm{.}10\%$

Make your selection: