1. The arbitrage argument for pricing futures contracts requires that the underlying commodity
A) not be perishable
B) held by all participants as an investment good
C) held by some participants as a consumption good
D) none of the above
2. Investors will generally accept a lower yield on ________ than on __________ of comparable terms, making them a less costly source of funds for the issuer to service.
a. registered bonds, bearer bonds
b. bearer bonds, registered bonds
c. Eurobonds, domestic bonds
d. Domestic bonds, Eurobonds