1. Which of the following events would increase the chance that an existing callable bond will indeed be called for early redemption by the issuer?
a) The company's bonds are down graded by a rating agency.
b) Market interest rates rise sharply.
c) Market interest rates decline sharply.
d) Inflation increases significantly.
2. Which of the below will probably offer the lowest Yield to Maturity?
a) Speculative grade bonds
b) U.S. Treasury Bonds
c) Corporate Bonds
d) U.S. Treasury Bills
3. The interest earned on which type of bond is never taxable at the Federal level?
a) U.S. Treasury Bonds
b) Corporate Bonds
c) Municipal Bonds
d) 0-coupon bonds
4. All of the below are commonly used measures of Bond Yield except:
a) Yield to Call
b) Coupon Rate
c) Yield to Maturity
d) Current Yield