Question 15

Which of the following are TRUE statements pertaining to "Treasury Securities"?

	A.	Treasury notes have maturities of more than 10 years (i.e., 20 and 30 years)
	B.	Treasury bonds have maturities of more than 10 years (i.e., 20 and 30 years)
	C.	Treasury bonds have maturities of less than a year (i.e., 4, 13, and 26 weeks)
	D.	Treasury bills have maturities of less than a year (i.e., 4, 13, and 26 weeks)
	E.	Treasury notes have maturities of 1-10 years (i.e., 2, 3, 5, and 10 years)

Question 16

Jackson bought a 10-year, $1,000 PAR coupon bond today. Annual coupon rate is 13%. Coupons are paid 1 times in a year. When he purchased, Jackson was hoping for a YTM of 10% on this Bond. Assume that Jackson's return expectations did not change and 2 years have passed.

How much should be the current value of the Bond that Jackson bought? Enter your answer in the following format: 1234.56 Hint: Answer is between 1044.04 and 1264.45

Question 17

Which of the following statements regarding the "Basic Bond Valuation Equation" is FALSE?

	A.	Present Value of a Bond has two components: PV of Coupon Payments and PV of Principal Payment
	B.	PV of Bond Coupons is computed using the Growing Annuity formula
	C.	PV of a Bond = (coupon x annuity factor) + (par value x discount factor)
	D.	PV of a Zero-Coupon Bond depends entirely on the par value and the discount factor