1. A 6% coupon 20-year bond was bought 8 years ago is priced now to offer a 6% yield to maturity. You believe that in one year, the yield to maturity will be 5%. What is the change in price the bond will experience in dollars from now to one year later? In percentage?
2. In a coin-flip game, you can win $5 when the head is up and lose $5 when the tail is up. Assuming equal probabilities for getting a head and getting a tail, what is the standard deviation of this game?
In determining adjusted gross income, the taxpayer may reduce gross income by which of the following?
a 100% of self-employment tax paid
b Alimony received from an ex-spouse
c Qualifying moving expenses
d Medical expenses