Name: _____ Nickname for grades: __

                      Financial Management I  Fall 2011

                                   Quiz 2  Solutions

You have 15 minutes to complete this quiz. It is worth 10 points. PAY ATTENTION TO

WHETHER THE BONDS IN THIS QUIZ HAVE ANNUAL OR SEMI-ANNUAL COUPONS!

__ 1. What is the yield to maturity of a 10-year bond with a 4 percent semi-annual coupon

      and a par value of 1,000 if its current price is 1,200?

      A. %

      B. %

      C. %

      D. %

      E. None of the above; the correct answer is __________.

__ 2. What is the current yield of a 20-year annual coupon bond with an 8 percent annual

      coupon and a par...