a1; A bond with a 5-year maturity has a face value of 1,000 and coupon of 8%. Its amortization schedule is 20% at the end of year 3 and 20% at the end of year 4. What is its total cash flow at the end of year 3?

a.)80

b.) 180

c.)200

d.)264

e.)280

a2; You purchase a twenty year zero coupon bond with a yield of 5%. One year later you sell the bond at a yield of 4%. What is your rate-of-return?

		0%
		4.00%
		5.00%
		21.09%
		25.94%

a3; You purchase a twenty year, 5% coupon bond with a yield of 5%. One year later you sell the bond at a yield of 4%. What is your rate-of-return?

4.00%

5.00%

13.13%

18.13%

18.59%

21.09%

a4; A company intends to raise funds by issuing a security with the following promised cash flows:

$150,000 in 3 years

$500,000 in 5 years

How much money will it raise if the discount rate for both cash flows is 5%?

		$509,292
		$521,339
		$619,048
		$650,000