The yield for a 5 year bond today is ____ rate and the yield for a 2 year bond beginning next…

The yield for a 5 year bond today is ____ rate and the yield for a 2 year bond beginning next year is ___ rate.

• A. Spot; forward
• B. forward; spot
• C. Spot; spot
• D. forward; forward

Assume the quoted price for Eurodollar futures is 98.5 today. This implies that if you invest ________ dollars today then you will get _____ after 90 days.

• A. 985,000; 1M
• B. 985,000 ; 996,250
• C. 996,250 ; 1M
• D. 1M ; 1,009,850

Which of the following bonds will rise the most if yield drops the same for all bonds?

• A. 5 year zero coupon
• B. 4 year zero coupon
• C. 5 year 2% coupon
• D. 4 year 8% coupon
• E. 5 year 8% coupon