1. Which of the following measures would increase the duration of a bond issue?
a. exercising a call option
b. offering bondholders early retirement of bonds
c. prepaying interest
d. exercising an extendible option
2. Periods of a negatively sloped yield curve have also been times of
a. rising interest rates and inflation
b. a bull market in stocks
c. rapid economic growth that reduced the cost of long term debt
d. low commodity prices