1. You own an 11% $1,000 par bond pays its coupon twice each year.The market rate has dropped to 7% and the bond has 12 years left to maturity.You decide to sell the bond as you believe rates will be rising again, soon.What price should you get for this bond?
A. 1,000
B. 899.44
C. 1,207.95
D. 1,321.17
2. An option on the Canadian dollar that can only be exercised on its expiration is a(an)
a) Canadian-type
b) European-type
c) Asian-type
d) Philadelphia-type
e) American-type