Q1) Su Yee purchased a 15 year, 7% coupon bond a few years ago at par. Since then, interest rates have fallen. Ms. Yee's return has been negatively impacted by:

A.) Price Risk

B.) Re-investment Risk

C.) Both Price Risk and Re-investment Risk.

Q2) Cronos Inc just issued zero coupon bonds due in 8.5 years. The bonds were issued at a yield to maturity of 3.95%. The price per 100 received by Cronos is closest to:

A.) $ 71.94

B.) $ 71.71

C.) $ 51.76

Thank You!