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FIN 300 – Exam 2 – “Homestretch” Checklist Here is a list of problem types and issues that you might see – by the way, this is nothing new relative to what we have talked about in class (or the topics and types of calculations presented in my lecture slides) – it’s just a recap •Bonds – Ch. 8 oQuantitative problems – calculations to know Price of a semi-annual coupon-paying bond Price of an annual zero-coupon bond Yield-to-maturity of an annual zero-coupon bond oQualitative and conceptual issues to know What it means for a bond to trade at a “premium,” “at par,” or at a “discount” •What do those 3 situations mean with regard to the relationship of price to the face value? •What do those 3 situations mean with regard to the relationship of yield-to-maturity (YTM) to the coupon rate? The relationship of price vs. yield The relationship of price volatility (when interest rates change) to the maturity of a bond •Are longer or shorter maturity bonds more or less volatile?