1. You recall that bonds are traded in dealer market in which dealers hold inventory in bonds. You want to sell a bond to a dealer. Which one of the following prices will you receive?
a. call price
b. auction price
c. bid price
d. ask price
e. bid-ask price
2. A bond has a coupon of 6.3%, payable semi-annually, matures in 9 years, and is currently priced at $1082.50. What is this bond's yield to maturity?
a. 2.5717%
b. 3.6546%
c. 5.1433%
d. 6.121%