1. What is the quoted price of a bond that matures in exactly 6 years, has a coupon rate of 5% and a YTM of 7%? Assume the issuer just made a coupon payment.
   1. 90.34
   2. 685.42
   3. 90.57
   4. 903.37

ans: A, Please explain

1. Today is May 1, 2015. A bond matures on September 15, 2020, has a coupon rate of 5%, YTM is 6%, and a quoted price of 95.458. What is the invoice price of this bond? (Hint: 184 days between payments, 47 days since last payments)
   1. 95.514
   2. 96.097
   3. 94.612
   4. 96.677

ans: B, Please explain

12) Today is 7/1/2018. A callable bond with a maturity of 12/31/2024 and a 6% coupon sells for 93.40. The call date is 12/31/2018 and the call price is 102. Which of the statement is true? A. The bond is likely to be called and the YTC is 8.41% B. The bond is likely to be called and the YTC is 24.84% C. The bond is not likely to be called and the YTM is 7.29% D. The bond is not likely to be called and the YTM is 8.41% ans: C, Please explain

18) You purchased a 5-year, 6% coupon bond with a YTM of 4%. If you sold the bond after receiving the second interest payment and the bond's YTM had changed to 3%, your annual total rate of return on holding the bond for that year would have been A. 5.00% B. 5.51% C. 6.68% D. 7.57% ans: D, explain