Choose the correct answers -

1.In 2017, you realize a 3.27% annual return on your investments and your real rate of return is 1.84%.What is the annual inflation rate over the same period?

(A.1.43%, B.1.84%, C.5.11%, D.0.00%)

2. Today, you purchase a corporate bond with an annual coupon rate of 5.50% and 3 years to maturity.The bond is currently yielding 4.21%.You plan to sell the bond in 1 year when you expect the bond to yield 2.21%. What is the total dollar return you'll receive from capital gain/loss after selling the bond?( A.$64.02, B.$36.00, C.$28.02, D.$55.00)

3.The price of a bond is ___________ related to its yield.

(A. inversely B.directly C.not)

4. Holding all other variables constant, a bonds price moves toward par value as time passes.What type of risk is reduced only due to the passing of time?(A.Liquidity risk, B.Default risk, C.Inflation risk D.Maturity risk)

5.What is the approximate 10 year Treasury Bond Rate as of October 29, 2018 (close price)?

(A. 2.00% B.2.25% C.3.10% D.3.50%)