Table 8.0 (for questions 8 and 9).

Information regarding Bond Z, sold for settlement on August 22, 2014.

Annual Coupon 5%

Coupon Payment Frequency Semiannual I

nterest Payment Dates 14 March and 14 September

Maturity Date 14 September 2016

Day-count Convention 30/360

Annual Yield-to-Maturity 4%

8. For Bond Z listed in Table 8.0 what is the accrued interest per 100 of par value on the settlement date of 22 Aug 2014 is:

a) 2.21

b) 1.50

c) 4.42

d) none of the above.

9. What is the full price, at settlement, of Bond Z in Table 8.0?

a) 101.90

b) 103.70

c) 104.11

d) none of the above.