1. Intrest rate is 6.5%,Year of Maturity is 2030

You were given information about a bond issued by CVT. If the yield to maturity is 6.2%, then the bond will quote at  .

2. You were given information about a bond issued by CVT. If the price of the bond is $964.39, then the yield to maturity on the bond (to two decimal places as a percentage) is  %.

3. Which investors have the prior claim on the cash flows of a corporation?

A. shareholders

B. common stock holders

C. preferred stock holders

D. bondholders

4. The difference between the yield on a 30-year high investment grade bond (AAA) and the yield on the 30-year Treasury bond would is which of the following?

A. the risk-free rate

B. the credit (default) risk premium

C. the maturity premium

D. the liquidity premium

E. the real rate of return

5. You financed the purchase of a $18,000 car with a five-year loan from your bank.

A. The bank issued you a note.

B. The bank bought a note from you.

C. You purchased a bond from the bank.

D. You bought a bill from the bank.

E. You sold a bond to the bank.