Part III Begins Here: Answer 3 of the following 5 numbered questions @ 16 points each. Select yes if you understand the instructions, and continue the exam.

Which of the following would NOT cause the demand for bonds to change?

Which of the following could be expected to cause the equilibrium interest rate to rise?

Part II: Short Problems begins here–Answer 5 of the following 7 Roman numeral questions @ 5 points each Select yes if you understand the instructions, and continue the exam.

Which of the following bonds would you prefer to be buying? Assume n = 30 for all bond maturities.

A client who is postoperative following a knee arthroplasty is concerned about the adverse effects of the medication prescribed for pain management.  Which of the following memeber of the interprofessional care team can assist the client in understanding the medication’s effects? Select all that apply.

16-point question 2. Evaluate which of the following options would be your best investment based solely on the yield to maturity criterion. Option #1:  Purchase a $50,000 discount bond selling for $37,777 and maturing in 6 years. Option #2:  Purchase a $75,000 coupon bond with a 6.65% coupon rate selling for $72,800 and also                    maturing in 6 years. Option #3:  Lend a friend $30,000 with promised repayments of $6,050.00 in 2 years, $14,641.00 in 4 years,                    and $26,573.42 in 6 years. Note: The payments represent 1/6, 1/3, & 1/2 of the original loan amount.

Interest rates typically follow a __________ pattern relative to economic activity and the default premium typically follows a ___________ pattern relative to economic activity.

If there is an excess supply of money

Which of the following bonds would you prefer to be buying? Assume n = 30 for all bond maturities.