1.

You are purchasing a zero coupon bond. This bond has an issue price of $700 and a Face Value of $1,000. If the Maturity of this bond is in ten years, what is the Coupon Rate?

		1.80%
		7.26%
		3.60%
		3.63%

2.

You can purchase stock from XYZ Corp at a price of $40/share. You purchase 200 shares today, and then invest $500/month each month thereafter purchasing new shares. You expect that the price of the stock will increase 7% annually (compounded monthly). If this happens, what will the value of your XYZ stock be in five years?

		$27,586
		$14,095
		$47,137
		$24,455

3.

PowerTech Company has issued bonds paying a 4% Coupon Rate. The current market price of the bonds are $960. What is the Current Yield of the bond?

		4.17%
		4%
		4.21%
		5.39%

4.

Voyager, Inc. has issued bonds with a twenty-year maturity that are paying a coupon of 8%. Rates have decreased since this issuing, so the bond is selling at a premium of $1,050. What is the Yield to Maturity if the bond was issued four years ago?

		3.40%
		7.46%
		3.73%
		6.80%

5.

You have two choices for bond purchases:

A bond rated BB+

A bond rated A+

Of the two, which bond has the least amount of risk associated with it?

		BB+
		A+