Suppose your friend tells you that she recently purchased a 10-year $4,000.00 bond with a 5% coupon. A month later, she saw it quoted at 91:4, but she does not know what this means.

You can tell by the way the bond is priced that she has a _______ bond; otherwise it would have been priced . You explain that the market price of her bond is now _______ , meaning it is now a ________ bond.

-dropdowns are

corparate or municipal , US treasury or agency

- 91, 91 1/8, 91.125

- 91.13, 3645, 4091, 366100

- discount, premium

Based on the market price of the bond you calculated, you can tell that market interest rates have gone since the bond was issued. The current yield of the bond is now .

dropdowns are

-up, down

- 5.00%

5.33%

5.49%

6.04%