1. If Trsury bills r currntly pying 4.2 prcnt nd th infltion rt is 2.6 prcnt, wht is th pproximt rl rt of intrst? Th xct rl rt? 1. 1.60 prcnt; 1.56 prcnt 2. 1.60 prcnt; 1.64 prcnt 3. 6.80 prcnt; 6.67 prcnt 4. 6.80 prcnt; 6.87 prcnt 5. 6.80 prcnt; 6.92 prcnt

2. A bond yildd rl rt of rturn of 3.87 prcnt for tim priod whn th infltion rt ws 4.75 prcnt. Wht ws th ctul nominl rt of rturn?

3. A $1,000,000 Trsury bond hs bid pric quot of 115:21 nd n skd quot of 115:22. In dollrs, wht is th vlu of th bid-sk sprd on this bond?

4. Bttr Plstics is mtur mnufcturing firm. Th compny just pid $4 nnul dividnd, but mngmnt xpcts to rduc th pyout by 3 prcnt pr yr, indfinitly. If you rquir 12 prcnt rturn on this stock, wht will you py for shr tody?