Last year, you bought a bond with face value $1000, maturity 20 years, coupon rate of 5.5% per year payable semi-annually and yield to maturity of 7% per year. Currently the bond sells for $900. How much would be your total yield if you sell this bond today?

	A	10.78%.
	B	(15.79%)
	C	13.71%
	S	(17.84%)

You borrow $25,000 to be repaid in 12 monthly installments of $2,392.00. The annual interest rate is closest to

	A	18 percent.
	B	2.2 percent.
	C	26 percent.
	D	24 percent.

Consider a 10 year bond which pays 6% coupon semi-annually and has a yield-to-maturity of 7%. How much would the price of bond change if investors required return increases to 8% per year?

		decrease by approximately $65
		decrease by approximately $52
		increase by approximately $54
		increase by approximately $125

Bill and Cathy will be retiring in fifteen years and would like to buy an Italian villa. The villa costs $500,000 today, and housing prices in Italy are expected to increase by 6.5% per year. Bill and Cathy wants to deposit an equal amount at the end of every year so that they can buy this villa in 15 years. If their account earns 10% per year, what is the amount of each deposit?

	A	$53,176
	B	$169,065
	C	$37,714
	D	$40,473