Can somone answer the 20 questions attached T/F and multiple choice.

QUESTION 1 The nominal rate of interest is generally greater than the real rate of interest. (Nominal interest rates will exceed real rates when the inflation rate is a positive number (as it usually is)GOOGLE) True False QUESTION 2 A decrease in the corporate tax rate should increase the real rate of interest. True False QUESTION 3 When government bond yields increase, we would expect the price of corporate bonds to increase. True False QUESTION 4 The greater a bond's maturity, the higher is its price volatility. True False QUESTION 5 If interest rates fall by 1%, a 10-year, 3% coupon bond will increase in price less than an otherwise equivalent zerocoupon bond. True False QUESTION 6 Bond investors prefer bonds with positive rather than negative convexity. True False QUESTION 7 Suppose that the 5-year treasury yield is 2.0%; the 5-years TIPS yield is .3%. What is the estimated 5-year inflation rate? 0.3% 1.2% 1.7% 2% 2.2% QUESTION 8 Suppose the spot US$ to Euro rate S = 1.10; the 6-month borrowing rate in Euros = REuro= .01; the 6-month future exchange rate US$ to Euros F =1.13. What US$ 6-month interest rate (RUS) would preserve interest rate parity? 0.01 0.032 0.065 None of the Above QUESTION 9 At issuance, bond coupon rates are usually set to be ______________ the market yield on similar bonds. below close to above none of the above QUESTION 10 Suppose a 10-year bond with a par value of $1000 has an annual coupon of 5% and a yield of 4%. What is the approximate present value of the coupon stream? $306 $406 $506 $606 QUESTION 11 Suppose a 10-year bond with a par value of $1000 has an annual coupon of 5% and a yield of 4%. What is the approximate present value of the principal repayment? $476 $576 $676 $776 QUESTION 12 Suppose a 10-year bond with a par value of $1000 has an annual coupon of 5% and a yield of 4%. What is the approximate price of this bond? $1,081 $1,181 $1,281 $1,381 QUESTION 13 Suppose a 20-year bond with a par value of $1000 has a semiannual coupon of 5% and a yield of 4%. What is the approximate price of this bond? $937 $1037 $1137 $1237 $1337 QUESTION 14 What is the approximate yield to maturity on a 5-year, 4% coupon bond (paid annually) with a par value of $1000 and a price of $956.71? 0.04 0.045 0.050 0.055 QUESTION 15 Which of the following bonds has the shortest duration? 5 year zero coupon 5-year, 5% coupon 10-year zero coupon 10-year, 5% coupon QUESTION 16 What is the approximate duration of a 10-year, 7% coupon bond with annual coupons, a par value of $1,000 and a yield of 4%. 8 9 10 11 None of the above QUESTION 17 If a bond portfolio manager expects interest rates to fall, she will _______ the duration of her bond portfolio. shorten maintain increase none of the above QUESTION 18 Assume a 15-year zero has a yield of 4% and a par value of $1000. What is this bond's approximate price? $540 $545 $550 $555 none of the above QUESTION 19 Assume a 15-year zero has a yield of 5% and a par value of $1000. What is this bond's approximate price? $481 $491 $501 $511 none of the above QUESTION 20 Assume a 15-year zero has a yield of 4% and a par value of $1000. Using duration, what is the new bond's approximate price if interest rates rise by 1%? $472 $482 $492 $502 none of the above