Based on the table above, what is $2-$year rate $2$ years from now?

A$.7\mathrm{.}00\%$

B$.7\mathrm{.}84\%$

C$.8\mathrm{.}68\%$

D$.10\mathrm{.}39\%$

You buy a bond with a $$1,000$ par today for a price of $$1,055.$ The bond has $4$ years to maturity and

makes annual coupon payments of $$70$ per year. You hold the bond to maturity but you do not

reinvest any of your coupons. What was your effective rate of return over the holding period?

A$.4\mathrm{.}95\%$

B$.5\mathrm{.}43\%$

C$.5\mathrm{.}91\%$

D$.6\mathrm{.}43\%$

A coupon bond that pays interest of $6\%$ annually has a par value of $$1,000,$ matures in $3$ years, and is

selling today for $$956.$ What is the effective rate of return you will earn on this bond if you are able to

reinvest your coupon payments at the following rates: Year $1$: $5\mathrm{.}6\%$; Year $2$: $5\mathrm{.}1\%.$

A$.6\mathrm{.}51\%$

B$.7\mathrm{.}57\%$

C$.7\mathrm{.}70\%$

D$.8\mathrm{.}24\%$