Suppose the spot US$ to Euro rate S = 1.10; the 6-month borrowing rate in Euros = REuro= .01; the 6-month future exchange rate US$ to Euros F =1.13. What US$ 6-month interest rate (RUS) would preserve interest rate parity? Which Answer: A.0.01 B.0.032 C.0.065 D.None of the Above

Suppose a 10-year bond with a par value of $1000 has an annual coupon of 5% and a yield of 4%. What is the approximate price of this bond? Which Answer: A. $1,081 B. $1,181 C. $1,281 D. $1,381

Suppose a 20-year bond with a par value of $1000 has a semiannual coupon of 5% and a yield of 4%. What is the approximate price of this bond? Which Answer: A. $937 B. $1037 C. $1137 D. $1237 E. $1337

What is the approximate yield to maturity on a 5-year, 4% coupon bond (paid annually) with a par value of $1000 and a price of $956.71? Which Answer: A. .04 B. .045 C. .05 D. .055