1. A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon payments made on July 1 and January 1. If the bond changes hands on November 1, which of the following is true with respect to accrued interest?
The buyer will pay the seller $20 of accrued interest
The seller will pay the buyer $20 of accrued interest
The buyer will pay the seller $10 of accrued interest
The seller will pay the buyer $10 of accrued interest
None of the above
2. What is the yield to maturity of a bond with a par value of $1,000, a 6% coupon rate with semi-annual payments, and 5 years to maturity if the bond sells for $1,100?
A. 14.68%
B. 11.35%
C. 8.50%
D. 3.79%
E. 1.89%
3. What is the price of a bond with a par value of $1,000, 11 years to maturity and a 7% coupon rate with semi-annual coupon payments if the bond has a yield to maturity of 4%?
A. $1,264.87
B. $1,262.81
C. $1,079.68
D. $1,000.00
E. $927.74