D Question 1 0.4 pts Suppose a coupon bond is trading at a premium, or price is greater than face value. This means that 0 coupon rate is equal to yield to maturity. 0 coupon rate is greater than yield to maturity. 0 coupon rate is less than yield to maturity. 0 yield to maturity must be negative. Question 2 0.4 pts Suppose a Treasury bond with 3% coupon rate and 10 year maturity is trading at a price equal to face value. What is yield to maturity? Answer in percent, round to two decimal places, and do not enter a '%' sign. : D Question 3 0.4 pts Use the EXCEL rate function or nancial calculator to answer the following question. Olga borrowed $400,000 to purchase a house. She makes payments of $2000 per month on her 30 year mortgage. What is the interest rate on her loan? Answer in percent, round to two decimal places and do not enter a % sign. Question 4 0.4 pts Use the EXCEL rate function or nancial calculator to answer the following question. Joel borrowed $32,000 to purchase a car and makes payments of $550 per month on his 7 year car loan. What interest rate is he charged? Answer in percent, round to two decimal places and do not enter a '%' sign. D Question 5 0.4 pts Use the EXCEL rate function or nancial calculator to answer the following question. A semi- annual Treasury security with coupon rate of 4.625% that matures in 20 years is currently priced at $144.15 per $100 of face value. What is the yield to maturity on this bond? Answer in percent, round to two decimal places, and do not enter a '%' sign. Question 6 0.4 pts ACME issues a semi-annual coupon bond with coupon rate of 3%, face value of $100, and maturity of 10 years. The initial price of the bond is $85. Over the course of the year, the price of the bond changes to $83. What is the current yield? Answer as a percent, round to two decimal places and do not enter a '/o' sign. D Question 7 0.4 pts ACME issues a semi-annual coupon bond with coupon rate of 3%, face value of $100, and maturity of 10 years. The initial price of the bond is $85. Over the course of the year, the price of the bond changes to $83. What is the (percent) capital gain? Answer as a percent, round to two decimal places and do not enter a '%' sign. D Question 8 0.4 pts ACME issues a semi-annual coupon bond with coupon rate of 3%, face value of $100, and maturity of 10 years. The initial price of the bond is $85. Over the course of the year. the price of the bond changes to $83. What is the (percent) return? Answer as a percent, round to two decimal places and do not enter a '%' sign. D Question 9 0.4 pts ACME issues a semi-annual coupon bond with coupon rate of 3%, face value of $100, and maturity of 10 years. The initial price of the bond is $85. Over the course of the year. the price of the bond changes to $83. This means 0 yield to maturity remained constant. 0 yield to maturity decreased. 0 cannot be determined. 0 yield to maturity increased. _ Which of the following types of securities makes the same payment every period for multiple periods. 0 fixed payment loan 0 coupon bond 0 discount bond 0 simple loan D Question 11 0.4 pts The risk that bond prices fall due to changing market conditions is called 0 interest rate risk 0 portfolio risk 0 default risk 0 ination risk D Question 12 Johnny earned a return of 10% on his discount bond holdings this year. The value of these holdings is currently $12,500. What was the value at the start of the year? Round to two decimal places and do not enter a 'S' sign. Johnny earned a return of 12% on his coupon bond holdings this year. The value of these holdings is currently $15,000. At the start of the year, the value was $14,000. What was the dollar value of income earned? Round to two decimal places and do not enter a 3 sign. 3 D Question 14 0.4 pts Johnny earned a return of 12% on his coupon bond holdings this year. The value of these holdings is currently $15,000. At the start of the year, the value was $14,000. What was the current yield? Answer as a percent, round to two decimal places and do not enter a 96 sign. S 1:) Question 15 0.4 pts Suppose a friend takes out a 30-year mortgage for $250,000 with a monthly payment of $1 'I 00. You guess the interest rate is 5%. Your guess is Price = Payment 0 too low 0 there is not enough information to evaluate 0 just right 0 too high D Question 16 0.4 pts Read the article First-Time Issuers Help Fuel Junk Bond Rally published in The Wall Street Journal August 20, 2021. Why are junk bonds attractive to investors? O these types of bonds are considered relatively safe. O the market for junk bonds is more liquid than the Treasury market. the yields on junk bonds are higher than Treasury securities. O investors are expecting low inflation D Question 17 0.4 pts Read the article First-Time Issuers Help Fuel Junk Bond Rally published in The Wall Street Journal August 20, 2021. What were the issuers of the junk bonds doing with the funds they receive from investors? O purchasing Treasury securities. O refinancing loans or private debt. O buying back shares of stock. O expanding operations.Question 1 8 0.4 pts Sally can afford to make car payments of $400 per month. At an interest rate of 5% and a loan term of 5 years, what is the maximum she can afford to borrow? Round to two decimal places and do not enter a 3 sign. Lex wants to purchase a $40,000 car. He is quoted an interest rate of 4% for 6 years. What is the value of his monthly payment? Round to the nearest penny S Lex wants to purchase a $40,000 car. He is quoted an interest rate of 3.5% for 5 years. What is the value of his monthly payment? Round to the nearest penny S D Question 21 0.4 pts ACME issues a semi annual coupon bond with coupon rate of 6%, face value of $100, and maturity of 5 years. How many coupon payments are paid out each year? S D Question 22 0.4 pts ACME issues a semi annual coupon bond with coupon rate of 6%, face value of $100, and maturity of 5 years. What is the value of each coupon payment? ACME issues a semi-annual coupon bond with coupon rate of 6%, face value of $100, and maturity of 5 years. How may coupon payments are made? E D Question 24 0.4 pts ACME issues a semi-annual coupon bond with coupon rate of 6%, face value of $100, and maturity of 5 years. Suppose the yield to maturity is 4%. Price this bond. Round to two decimal places and not enter a 8 sign. FV Price = Coupon payment f + i 1+"*P ( p) ACME issues a semi-annual coupon bond with coupon rate of 3%. face value of $100, and maturity of 10 years. Suppose the yield to maturity is 5%. Price this bond. Round to two decimal places and not enter a S sign. TH'p . 1+5 FV Price = Coupon payment 1' + i E (1 + 5)n*p