An analyst collects the following spot rates, stated as annual BEYs: 6-month spot rate =6%. 12-month spot rate =6.5%. 18-month spot rate =7%. 24-month spot rate =7.5%. Given only this information, the value of a 2 -year, semiannual-pay, 10% coupon bond with a face value of $1000 is closest to:（）

单项选择题A company has two $1000 face value bonds outstanding both selling for $701.22. The first issue has an annual coupon of 8% and 20 years to maturity. The second bond has the same yield as the first bond but has only five years remaining until maturity. The second issue pays interest annually as well. What is the annual interest payment on the second issue（）

A. $13.59.
B. $18.56.
C. $37.12.

单项选择题With respect to an option-free bond, when interest-rate changes are large, the duration measure will overestimate the:（）

A. fall in a bond’s price from a given increase in interest rates.
B. increase in a bond’s price from a given increase in interest rates.
C. final bond price from a given increase in interest rates.