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Use the following information for the next 2 questions Bernie Sanders bought a bond 2 years ago at which time offered 6% YI ago at which time offered 6% YTM (yield to maturity). Elizabeth Warren bought the same bond 1 year ago at which time ght the same bond 1 year ago at which time it offered a 4% YTM 11. Today the YTM on that bond issue is 5%. Who has made a larger $ profit on her bond investment? A. Bernie Sanders B. Elizabeth Warren C. Both earned the same profit since todays 5% YTM affects them equally. D. Neither, both are categorically opposed to profit. 12. From today forward Sanders will continue to earn a higher YTM than Warren. A. True B. True, Bernie will tax you more and take away most of your earnings. C. False, they earn the same YTM D. None of the above You obtain the following yield quotes for the 10 year U.S. Treasury bond. - 2.0% for Treasuries due 2016 - 2.8% for Treasuries due 2017 - 3.1% for Treasuries due 2018 -3.3% for Treasuries due 2019 - 4.2% for Treasuries due 2020 You call your broker to buy a GE bond due 2019 and receive the following quote: 140 over. 13. What will be the YTM on your GE bond due 2019? A. 4.7% B. 3.3% C. 1.4% D. 5.6% 14. Based on U.S. Treasury bond yield changes from 20182019, what YTM for the 2020 bond would present a market neutral perspective. (i.e. no positive or negative sentiment). A. 3.51% B. 4.47% C. 0.00% D. 7.03%

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