1) Treasury Inflation-Protected Securities (TIPS) have __________ interest payments unlike the _________ interest payments associated with traditional T-bonds.
a. none of the above
b. variable; fixed
c. zero; fixed
d. fixed; variable
2) __________ measures the number of years needed to recover the conversion premium with the convertible’s higher income.
a. Macaulay duration
b. Time to maturity
c. Conversion value
d. Breakeven time