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.

A nurse is discussing occurrences that require completion of an incident report with a newly licensed nurse.  Which of the following should the nurse include in the teaching? Select all that apply.

16-point question 1. Eight years ago you bought a $750,000, 25-year, deep discount bond with a market interest rate of 7.84%. Since     then market rates have fallen to 6.65% and you find that you must sell the bond. a. Calculate the initial and current price of the bond.            b. Calculate the annual holding period yield on this instrument and compare it to the yield to maturity you were     expecting when you purchased the instrument. c. Explain whether your return would have been relatively greater or less than you received in part b if you held a    15-year instrument initially. Support your conclusion with the appropriate work. d. Explain whether your return would have been relatively greater or less than you received in part b if you held a     5-year instrument initially.

If a saver pays $975 for a bond with a face value of $1,000 and annual payments, it follows that