1. Which of the following bonds has the LEAST amount of interest rate risk?
a. 3% Coupon, 5-year Treasury Note
b. 1% Coupon, 15-year Treasury Note
c. 1% Coupon, 30-year Treasury Bond
d. 3% Coupon, 15-year Treasury Note
2. Which of the following statements is TRUE?
a. The interest paid on debt is taxable at the firm level.
b. Debt represents ownership in the firm.
c. Unpaid debt is a liability of the firm.
d. Creditors often have voting power.