A bond pays annual interest. Its coupon rate is 7.4%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity is currently 4.4%. The duration of this bond is __________ years.

Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 5.50%. Assume annual coupon payments. Time Inflation in year just ended Par value Coupon payment + Principal repayment = Total payment 0 $ 1,000.00 1 3.5% $ 1,035.00 $ 56.93 0 $ 56.93 2 2.5% $ 1,060.88 $ 58.35 0 $ 58.35 3 4.5% $ 1,108.62 $ 60.97 $ 1,108.62 $ 1,169.59 What is the nominal rate of return on the TIPS bond in the first year?

The lady continues to suggest that her poverty is a virtue . What does she reference as evidence of this in lines 1177 – 1182?

The lady offers him a choice to help him like her. What does he choose?

The Wife of Bath includes a side-story in her tale about King Midas from Greek mythology and his wife. What is the lesson she is trying to show about how women keep secrets?

You have a 25-year maturity, 10.8% coupon, 10.8% yield bond with a duration of 10 years and a convexity of 136.3. If the interest rate were to fall 133 basis points, your predicted new price for the bond (including convexity) is __________. (Select the closest answer.)

The lady lectures the knight on his arrogance and unkindness to her. Though she was “low-born” like a peasant and he was of higher class as a knight, what does she suggest makes someone of lower class? (Lines 1165 – 1176)

Her tale opens with a violent crime. What does the knight do?

J. M. Keyes put all his money in one stock, and the stock doubled in value in a matter of months. He did this three times in a row with three different stocks. J. M. got his picture on the front page of the Wall Street Journal. However, the paper never mentioned the thousands of investors who made similar bets on other stocks and lost most of their money. This is an example of the __________ problem in deciding how efficient the markets are.

You have a $44,000 portfolio consisting of Intel, GE, and Con Edison. You put $21,600 in Intel, $9,600 in GE, and the rest in Con Edison. Intel, GE, and Con Edison have betas of 1.3, 1, and 0.8, respectively. What is your portfolio beta?