1. Is a currency swap contract a debt obligation that involves a borrower and a lender? Why or Why not?
2. Karen just bought a 10 year, 6 percent coupon bond with 1000 par for 850. if she sells this bond two years later for 920, what is the realized yield per year for her two year holding (with semiannual interests)?
3. Madsen Motors's bonds have 6 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 7.5%; and the yield to maturity is 5%. What is the bond's current market price?