1. What has happened to long term interest rates in binds and mortgages since the November 8, 2016 US Presidential Election?

a. both bond rates and mortgages rates have decline sharply

b. both bond rates and mortgage rates have increased sharply

c. both rates have increased but mortgage rates have declined

d. both rates and mortgage rates have both declined slightly

e. both rates have been very stable relative to their normal hisotrical value

2. A $1,000 bond with maturity value of $1,000 pays interest of $35 each quarter and will mature in 10 years. If your nominal annual rate of return is 12 percent, how much should you be willing to pay for this bond?

a. $941.36

b. $1,051.25

c. $1,115.57

d. $1,391.00

e. $825.49