- Yesterday’s yield is 6.18% and today’s yield is 6.10%. The percentage yield change from yesterday to today, assuming continuous compounding, is closest to: A) -1.098% B) -1.2945% C) -1.303% 2) Current yield on a bond is 7.19% and bond’s standard deviation is 11.3%. The 99.7% confidence interval for the yield is closest to: A) 6.32%, 8.04% B) 5.56%, 8.81% C) 4.75%, 9.63% 3) If there are 250 days trading days in a year and the daily historical yield volatility is 0.34%, the annual standard deviation of the yield is closest to: A) 5.38% B) 0.85% C) 6.84%

- ln that bad boy 2) 7.19+/- 3(.113) 3).34*sqrt(250) damil fo real

1,C 2,C (wake2000, please confirm your formula) 3,A

Current yield on a bond is 7.19% standard deviation is 11.3%. Actual standard deviation of yield is 7.19% * 11.3%= 0.81247% confidence interval 7.195 +(-) 3*0.81247%

qxue - I see the answer in the book, but where is this topic covered?

1.C 2.C 3.A

C C A