You just purchased a $$1,000$ zero coupon bond with a maturity of one year for $$909\mathrm{.}09$

$($with a yield of $10\%).$ Tomorrow, the yield on the bond increases to $12\%.$ You hold the

bond to maturity. What is your return on the bond?

a$.-1\mathrm{.}79\%$

b$.10\%$

c$.-1\mathrm{.}81\%$

d$.12\%$

Which of the following is an example of zero$-$coupon bonds?

a$.$ Treasury Note

b$.$ Treasury Bond

c$.$ Treasury Bill

d$.$ Premium Bond

You find a $$1,000$ bond that is currently priced at $$1,130$ with a maturity of $30$ years. The

yield to maturity is $8\%$ per year. It pays an annual coupon, but you can't find the coupon rate

listed. Based on the given information, what is the coupon rate?

a$.9\mathrm{.}15\%$

b$.8\mathrm{.}10\%$

c$.8\mathrm{.}00\%$

d$.9\mathrm{.}05\%$

Which of the following is not a problem with the original Payback Investment Rule?

a$.$ Ignores cash flows after the payback period

b$.$ Less accurate for small investment decisions

c$.$ Ignores the time value of money

d$.$ Lacks an economic reason for its decision criteria