Question 1 (1 point)

A 12-year semiannual bond with a coupon rate of 6% has a face value of $1,000 and a YTM of 7%. The price of the bond is

Question 1 options:

	912.85
	914.25
	916.36
	919.71
	920.57

Question 2 (1 point)

A 4-year discount bond with a face value of $1,000 sells at $915. The YTM of the bond is

Question 2 options:

	2.24%
	2.52%
	2.83%
	3.21%
	3.48%

Question 3 (1 point)

A 7-year semiannual bond with a face value of $1,000 and a coupon rate of 8% sells at $974. The YTM of the bond is

Question 3 options:

	4.3%
	5.5%
	6.5%
	7.2%
	8.5%

Question 4 (1 point)

Consider a 20-year semiannual bond with a face value of $1,000, coupon rate of 6.5% and a market price of $1,014.72. The bond is callable in 4 years at the price of $1,050. The yield to call of this bond is

Question 4 options:

	6.4%
	6.8%
	7.2%
	7.6%
	8.2%

Question 5 (1 point)

An investor buys a 20-year semiannual bond with a coupon rate of 5% for $950. He plans to hold the bond for 8 years and then sell it. The investor expects to reinvest the first 6 coupon payments at 4.5% and the next 10 payments at 5.5%. He also expects that the bonds YTM at the end of the holding period to be 6%. Under these assumptions, the total interest amount is

Question 5 options:

	$420.63
	$450.85
	$474.51
	$491.47
	$512.36

Question 6 (1 point)

Question 6 options:

	$898.35
	$907.73
	$915.32
	$937.20
	$957.35

Question 7 (1 point)

An investor buys a bond for $975 with the intention to hold it for 6 years and then sell. He estimates the amount of the total future dollars for this investment as $1,508. This amount implies an annualized total return of

Question 7 options:

	7.4%
	7.7%
	8.2%
	8.5%
	8.8%

Question 8 (1 point)

Consider a bond with a YTM of 5.5% that sells at $970. If the yield falls to 5% the bonds new price will be $1,004. The duration of this bond is

Question 8 options:

	5.5 years
	6.2 years
	6.9 years
	7.4 years
	7.8 years

Question 9 (1 point)

A pension plan is obligated to make disbursements of $3 million in 2 years, $5 million in 3 years, $7 million in 4 years and $8 million in 5 years. Find the duration of this plans obligations if the interest rate is 6%.

Question 9 options:

	2.5 years
	3.2 years
	3.6 years
	3.8 years
	4.3 years

Question 10 (1 point)

Consider a 15-year semiannual bond with a 5% coupon rate. What is the bonds duration if its YTM is 4.5%?

Question 10 options:

	9.7 years
	10.9 years
	11.5 years
	12.1 years
	12.6 years