1. Your broker offers to sell you for $901.19 a 30-year, $1,000 face value Treasury bond with a 10% coupon rate. The bond pays interest annually. What is the yield to maturity, or expected rate of return, if you pay the asking price?

   		9%
   		10.19%
   		11.89%
   		11.15%
   		13.12%.

1 points

QUESTION 15

1. What is the most that you would be willing to pay for the above bond if you require a rate of return of 12%?

   		$1,200
   		$1,100
   		$900.09
   		$838.90
   		$799.99.