1) A bond with yield to maturity greater than the coupon rate is trading at a discount. TRUE/FALSE

2)Structured finance can produce highly rated

senior securities if there is a low level of subordination
	junior securities if there is a high level of subordination
	senior securities if there is a high level of subordination
	junior securities if there is a low level of subordination

3)When a bond's yield to maturity decreases..

the price will decrease and the coupon rate will be unchanged
	the coupon rate will increase and the price will be unchanged
	the price will increase and the coupon rate will be unchanged
	the coupon rate will decrease and the price will be unchanged

4) When a central bank is worried about prices rising too quickly, the central bank will

decrease the money supply to reduce inflation
	increase the money supply to increase inflation
	increase the money supply to reduce inflation
	decrease the money supply to increase inflation

5)Suppose that you buy a call option that is "out of the money." The price of the underlying asset increases to the strike price at expiration. You will

lose money on the transaction due to paying the option premium
	make money on the transaction due to earning the option premium
	lose money on the transaction due to earning the option premium
	make money on the transaction due to paying the option premium

6)If the Treasury yield is .75% and expected inflation is 1.75%, then the real yield is

1%
	2.5%
	-1%
	-2.5%

7)The AGG ETF tracks a

stock index and has a negative correlation with the 10-year yield
	bond index and has a positive correlation with the 10-year yield
	bond index and has a negative correlation with the 10-year yield
	stock index and has a positive correlation with the 10-year yield