Bond-11.docx - 1 Bond A has a yield to maturity of 7.90...

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1. Bond A has a yield to maturity of 7.90%, while bond B has a YTM of 7.60%. This difference would be described by a bond trader as: a. there-tenths of a percent b. three percentage points c. 30 basis points d. 3 basis points 2. By examining bond prices, coupons, and maturities, it is relatively straightforwardto determine _____ interest rates. a. realb. nominalc. expectedd. preferred 3. The current yield of a bond is far more useful than just looking at the coupon rate, because it utilizes the ____ instead of the ______ of a bond. 4. Susan has selected an appropriate bond to fill a gap in her portfolio. She has calculated the yield to maturity to be 8.3 percent, but she knows that this yield will only be realized if:
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