PLEASE JUST ANSWER ALL QUESTIONS NO NEED FOR WORK SHOWN. I WANT TO DOUBLE CHECK TO MAKE SURE I GOT THEM CORRECT THANK YOU VERY MUCH!!!

1. A two-year STRIP sells at an interest rate of 3.84 percent and a three-year STRIP sells at a rate of 3.97 percent. What is the implied one year interest

rate two years from now? Assume the rates are effective annual rates.

A. 4.23%

B. 4.36%

C. 4.41%

D. 4.45%

E. 4.50%

2. A $50,000 face value STRIPS is quoted at 94300. What is the dollar price?

A. $47,067.50

B. $47,150.00

C. $47,215.00

D. $47,277.78

E. $47,350.00

3. The following premiums apply to a 8-month bond; interest rate risk premium=.032 %; liquidity premium=0.44%; default premium=1.23%; inflation premium=3.12%; real rate=3.20%. What is the expected nominal interest rate on a 8-month risky security given these values?

A. 5.85%

B. 6.45%

C. 7.55%

D. 8.31%

E. 9.30%

4. A $50,000 face value STRIPS matures in 12 years and has a yield to maturity of 6.5%. What is the current dollar frice of this security?

A. $21,199.68

B. $23,206.44

C. $25,038.18

D. $26,141.41

E. $28,809.18

5. The Country Inn has bonds outstanding with a par value of $1,000 each and a 6.6% coupon. The bonds mature in 7.5 years and pay interest semiannually. What is the current value of each of these bonds if the yield to maturity is 6.8%?

A. $988.40

B. $1,003.29

C. $1,005.88

D. $1,008.36

E. $1,009.47

6. Alex purchased a $1,000 par value bond one year ago at a price of $1,016. At the time of purchase, the bond had 12 years to maturity and a 5%, semiannual coupon. Today, the bond has a yield to maturity of 5.25%. What is his realized yield as of today?

A. 0.43%

B. 0.86%

C. 1.19%

D. 1.32%

E. 2.60%

7. A Treasury bill has 40 days left to maturity. The bank discount yield on the bill is 3.75%. What is the effective annual rate?

A. 3.55%

B. 3.66%

C. 3.77%

D. 3.88%

E. 3.99%