1. Guggenheim, Inc. offers a 8.3% coupon bond with annual payments. The yield to maturity is 5.85% and the maturity date is 9 years. What is the market price of a $1,000 face value bond?
a. 975.50
b. 1291.95
c. 875.80
d. 1436.31
e. 1167.73
2. What is the holding period return on an investment over 3 years, if in the first year the return was 5.2%, the second year it was -10% and in the third year the return was 89.3%?
a. 169.23 percent
b. -119.06 percent
c. 79.23 percent
d. 179.23 percent