1-A collateral trust bond is _______. a- secured by other securities held by the firm b- secured by equipment owned by the firm c- secured by property owned by the firm d- unsecured 2.You buy a TIPS at issue at par for $1,000. The bond has a three percent coupon. Inflation turns out to be two percent, three percent and four percent over the next three years. The total annual coupon income you will receive in year three is _________. a- $30.00 b- $33.00 c- $32.78 d- $30.90 3. A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero coupon bonds and four percent yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero coupon bonds to immunize, if there are no other assets funding the plan? a- 52% b- 48% c- 33% d- 25% 4. Find the Yield-to-Maturity on a Annual Coupon Bond with a Price of $954, a Face Value of $1000, a Coupon Rate of 16 percent, and 15 years remaining until Maturity. a- 17% b- 16.86% c- 16% d- 15.86% 5. Find the Value of a Annual Coupon Bond with a Face Value of $1000, a Coupon Rate of 14.75 percent, and 18 years remaining until Maturity if the Interest Rate is 17.55 percent compounded Annually. a- 4.34% b- -4.34% c- -5.3% d- 5.3%