Question 5 (2.5 points) 5. Which of the following is false? A) Swaps are primarily traded in the over-the-counter market. B) CURINT is a combined Interest Rate and Currency Swap. C) The swap seller makes variable rate payments. D) FIs often guarantee the counterparty risk of SWAPS. E) SWAPS are in essence a portfolio of forward contracts Question 6 (2.5 points) 6. A bank has a twenty-year $10,000 bond with a maturity of twelve years as an asset on its balance sheet. The coupon rate is 6.8%, if rates increase by 1.05% what is the current market value of this bond if coupon payments are semi-annual? A) $10,000.00 B) $ 9,193.35 C) $ 9,426.50 D) $ 9,202.52 E) $11,225.72 Question 5 (2.5 points) 5. Which of the following is false? A) Swaps are primarily traded in the over-the-counter market. B) CURINT is a combined Interest Rate and Currency Swap. C) The swap seller makes variable rate payments. D) FIs often guarantee the counterparty risk of SWAPS. E) SWAPS are in essence a portfolio of forward contracts Question 6 (2.5 points) 6. A bank has a twenty-year $10,000 bond with a maturity of twelve years as an asset on its balance sheet. The coupon rate is 6.8%, if rates increase by 1.05% what is the current market value of this bond if coupon payments are semi-annual? A) $10,000.00 B) $ 9,193.35 C) $ 9,426.50 D) $ 9,202.52 E) $11,225.72