Question $11pts$

$A5-$year bond with $10\%$ coupon rate and $$1000$ face value $is$ selling for $$1123$ Rounded $to$ the nearest dollar. Calculate the yield $to$ maturity $on$ the bond assuming annual interest payments.

Group $of$ answer choices

$7\mathrm{.}0\%$

$10\%$

$8\mathrm{.}9\%$

None $of$ the above

Flag question: Question $2$

Question $21pts$

$A3-$year bond with $10\%$ coupon rate and $ Question $131pts$

$If$ the nominal interest rate $is4\%$ and the inflation rate $is2\%0\mathrm{.}01\%6\%$ and the inflation rate $is2\%0\mathrm{.}01\%7\%$ and the real rate $is$ understood $tobe8\%0\mathrm{.}01\%$ Question $111pts$

$A20-$year semi$-$annual coupon$-$paying bond has a face value $of$ $$1000,$ a coupon rate $of7\%,$ and trades

$at$ a price $of$ $$1100.$ What can $be$ said about the bond? Choose the most complete answer from the

options below.

Bond trades $at$ a premium and has a yield$-to-$maturity $(YTM)$ below $7\%.$

Bond trades $at$ a discount

Bond trades $at$ a premium.

Bond has a yield$-to-$maturity $(YTM)$ below $7\%.$

Bond has a yield$-to-$maturity $(YTM)$ above $7\%$

Bond trades $at$ a discount and has a yield$-to-$maturity $(YTM)$ above $7\%.$

Bond trades $at$ a premium and has a yield$-to-$maturity $(YTM)$ above $7\%.$

Question $121pts$

$A15-$year semiannual coupon bond trades $at$ a price $of$ $$905,$ has a coupon rate $of10\%,$ and a face

value $of$ $$1000.$ What $is$ the yield$-to-$maturity $(YTM)of$ this bond?

$11\mathrm{.}33\%$

$11\mathrm{.}10\%$

$11\mathrm{.}95\%$

$11\mathrm{.}35\%$

None $of$ the others Question $91pts$

Given a series $of$ semi$-$annual coupon$-$paying bonds, all having a coupon rate $of5\%$ and a face value $of$

$$1000.$

When the yield$-to-$maturity increases from $7\%to10\%,$ which one $of$ the following bonds will exhibit the

largest decrease $in$ price?

Bond with $5$ years $to$ maturity

Bond with $20$ years $to$ maturity

Bond with $3$ years $to$ maturity

Bond with $10$ years $to$ maturity

Question $101pts$

$A15-$year annual coupon bond trades $at$ a price $of$ $$905,$ has a coupon rate $of10\%,$ and a face value $of$

$$1000.$ What $is$ the yield$-to-$maturity $(YTM)of$ this bond?

$11\mathrm{.}95\%$

$11\mathrm{.}10\%$

$11\mathrm{.}35\%$

$11\mathrm{.}33\%$

None $of$ the others What $is$ the yield$-to-$maturity $(YTM)ofa6-$year zero$-$coupon bond with $a$ $$21,000$ face value that sells for

a market price $of$ $$79,0000\mathrm{.}01\%$ $$16,000,$

and a yield$-to-$maturity $of9\mathrm{.}17\%$$$0\mathrm{.}016\mathrm{.}36\%,$ a face value $of$

$$1000,$ and a yield$-to-$maturity $of6\mathrm{.}47\%$$$0\mathrm{.}018\mathrm{.}86\%,$ a face value $of$

$$1000,$ and a yield$-to-$maturity $of5\mathrm{.}04\%$$$0\mathrm{.}01$ Question $31pts$

Which $of$ the following statements about the relationship between interest rates and bond prices $is$ true?

$I8\mathrm{.}0\%$ coupon rate and face value $of$ $$1000.If$ the yield $to$ maturity $on$ the bond $is$

$10\%,$ calculate the price $of$ the bond assuming that the bond makes semi$-$annual coupon interest

payments.

$$857\mathrm{.}96$

$$1000\mathrm{.}00$

$$949\mathrm{.}24$

$$1,057\mathrm{.}54$