1. A Treasury note has 3.5 years left to maturity, a yield to maturity of 4.25 percent, and a coupon rate of 4.40 percent. What is the price of the bond?
$1,004.83
$1,005.53
$1,006.56
$1,007.58
$1,008.96
2. Combining uncorrelated assets will
A. decrease the overall risk level of a portfolio.
B. cause the other assets in the portfolio to become positively related.
C. increase the overall risk level of a portfolio.
D. not change the overall risk level of a portfolio.