1. While playing racquetball, a friend of yours tells you about a bond that is paying coupons of $100 and has a YTM of 6.8%. You don't need your financial calculator to know...
a) that this bond is priced at a discount.
b) that this bond is priced at a premium.
c) that this bond is priced at par.
2. Two months ago, a June Treasury bond futures contract had a quoted price of 98'12. Now, the quote price is 97'6. Market interest rates have
a. Gone up
b. Gone down
c. Remained the same
d. Need more information
e. None of the above