1. The following are typical sectors to consider during a recession, except _____________

Industrials

Utilities

Consumer staples

Health Care

1. We have the following yield curve: 3% at 1-year, 6% at 2-year, 5% at 3-year, and 4% at 4-year. A 4-year, 8% annual coupon bond with par $1,000 will be valued at ________ using the yield curve.

$1,281.6652

$1,141.1652

None of the options are correct

$957.1523

1. What is the Macaulay duration of a 6% coupon bond making annual coupon payments if it has 3 years until maturity and has a yield to maturity of 2%?

2.8428 years

1.8275 years

3.1873 years

None of the options are correct