Please answer these four multiple choice questions: $1.$ If the price of a $1-$year Treasury Bill is $$95\mathrm{.}00,$ compute the interest rate from the price using the PV formula:

a$.5\mathrm{.}12\%$

b$.5\mathrm{.}05\%$

c$.4\mathrm{.}96\%$

d$.5\mathrm{.}26\%2.$ If a $2-$year bullet maturity bond with a fixed rate $3\%$ coupon $($semi$-$annual pay$)$ that is trading at a $101\mathrm{.}00$ premium price $-$ what would you reasonably expect the yield$-$to$-$maturity to be:

a$.=3\%$

b$.<3\%$

c$.>3\%$

d$.0\%3.$ All else equal, a higher tax rate would affect the spread, or gap, between yields on taxable bonds vs$.$ tax$-$exempt bonds in the following way:

a$.$ Narrow the spread

b$.$ Widen the spread

c$.$ Not affect the spread

d$.$ None of the above $4.$ Financial intermediaries perform $5$ main functions, they are:

a$.$ Pool savings, safekeeping & accounting, provide liquidity, diversify risk and process equity transactions

b$.$ Pool savings, safekeeping & accounting, provide leverage, diversity risk and process information

c$.$ Pool savings, safekeeping & accounting, provide liquidity, diversify risk and collect & process information services

d$.$ Pool savings, safekeeping of precious metals, provide liquidity, diversify risk and collect & process information services