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Cecchetti3e_MCQuiz_Ch06_FINAL copy 2

# Cecchetti3e_MCQuiz_Ch06_FINAL copy 2 - Chapter 6 Bonds Bond...

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Chapter 6 Bonds, Bond Prices, and the Determination of Interest Rates Multiple Choice Questions 1. If the annual interest rate is 5% (.05), the price of a one year Treasury bill would be: (Hint: T-Bills have \$100 face value) A. \$95.00 B. \$97.50 C. \$95.24 D. \$96.10 Ans: C Difficulty: Hard Topic: Bond Prices. 2. If the annual interest rate is 5%, the price of a three-month Treasury bill would be: (Hint: T-Bills have \$100 face value) 3. If a consol is offering an annual coupon of \$50 and the annual interest rate is 6%, the price of the consol is:

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4. A \$1000 face value bond purchased for \$965.00, with an annual coupon of \$60, and 20 years to maturity has:
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Cecchetti3e_MCQuiz_Ch06_FINAL copy 2 - Chapter 6 Bonds Bond...

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