If the yield curve shift parallel upward, then long term bond prices should ____ than short term bond prices.

• A.drop more
• B.rise less
• C.rise more
• D.drop less

A speculator who bought or long a Treasury bond futures would ____ coupon interest per year for holding the futures contract during his holding period of the contract.

• A.Receive $30
• B.Receive $0
• C.Receive $60
• D.Pay $60
• E.Pay $30

You buy a callable bond today for 105 that pays 10% annual coupon only once a year. If the bond is called one year from now, then you will receive a 7% call premium. What would be the yield to call in this case?

• A.9.7%
• B.12.5%
• C.10.2%
• D.11.4%
• E.17%