ou purchased a 10-year Treasury Inflation Protected Security (TIPS) at par for $1,000 two years ago when it was first are paid at the end of each year. Today you received the second coupon. If the inflation rates were 6% per year and 5% per year during the past two years respectively, the par issued. The coupon rate is 3%, and the annual coupons value of your bond today should be S A. $1,000 B 1,030 C. $1,060 D. S1,090 E. 1,113 12. If you have a short position in a call option A. you have an obligation to sell shares at the exercise price if the option holder desires B. you have an obligation to buy shares at the exercise price if the option holder desires C. you have the right to buy shares at the exercise price D: you have the right to sell shares at the exercise price 13. The semi-strong form of the efficient market hypothesis implies that generate abnormal returns and A. Technical analysis cannot; fundamental analysis can B. Technical analysis can; fundamental analysis can C. Technical analysis can; fundamental analysis cannot D. Technical analysis cannot; fundamental analysis cannot 14. A Bonds rated or better by Standard & Poor's are considered investment grade. D. C 15. According to the capital asset pricing model, fairly priced securities have A. negative betas B. positive alphas C. positive betas D. zero alphas equivalent taxable yield of this bond to a taxpayer in a 40% tax bracket? A. 3.90% B. 5.75% 16. A municipal bond carries a coupon rate of 6.50% and is trading at par. What is th E.12.50% D.10.83% C, 6.10%