Q:1-A bond is priced such that it has a 9% yield to maturity. However, inflation is expected to be 2% per year over the remaining life of the bond. What is the real return for this investment?
Mark one answer:
4.50%
6.86%
7.00%
9.00%

Q:6-A bond currently trades at $975 on the secondary market. The bond has 10 years until maturity and pays an annual coupon at 9% of face value. The face value of the bond is $1,000. What is the yield to maturity for this bond?
Mark one answer:
8.86%
9.00%
9.23%
9.40%

Q:7-A bond currently trades at $980 on the secondary market. The bond has 10 years until maturity and pays a semi-annual coupon at 9% APR of face value. The face value of the bond is $1,000. What is the yield to maturity for this bond?
Mark one answer:
9.00%
9.18%
9.25%
9.31%

Q:8-A bond currently trades at $975 on the secondary market. The bond has 10 years until maturity and pays an annual coupon at 9% of face value. The face value of the bond is $1,000. What is the coupon yield for this bond?
Mark one answer:
8.86%
9.00%
9.23%
9.40%

Q:9-A $1,000 par value bond makes two coupon payments per year of $60 each. What is the bonds yield to maturity if the bond currently trades at $1,200 and will mature in two years?
Mark one answer:
1.78%
3.48%
6.00%
6.43%

Q:10-A one-year Treasury security currently returns a 4.50% yield to maturity. A two-year Treasury security offers a 4.80% yield to maturity. If the expectations hypothesis is true, what is the expected return on a one-year security next year?
Mark one answer:
4.80%
4.90%
5.00%
5.10%