Part A: A 10-year bond paying 10% coupon semi-annually is selling for $940.28. What is the yield demanded by investors?

		12%
		6%
		11%
		5.50%
		10%

Part B: An investor purchases at the beginning of the year a 5-year IBM bond paying a coupon of 6% and yielding 5%. She sells it at the end of the year when the yield had decreased to 4%. What is her one year rate of return?

Old Price $957.88 New Price $900.64 ROR -5.98%

Old Price $1,000.00 New Price $933.76 ROR -6.62%

Old Price	$979.22
New Price	$1,035.46		ROR	5.74%

Old Price	$1,043.29
New Price	$1,089.04		ROR	4.38%

Old Price	$848.37
New Price	$933.76		ROR	10.07%