1. When a callable T-bond is selling at a premium, the reported yield is which one of the following?
Current yield
Yield-to-maturity
Yield-to-discount
Yield-to-call
2. You purchase 100 shares at $10 per share on 50% margin. Assume margin interest of 10% per year. After one year the share price was $12 per share. Compute the return.
20%
15%
30%
40%