1. A corporate bond that yields 12% includes a risk-free rate of 7% and a default premium of 3%. The bond's maturity risk premium is _____.

	a.	4%
	b.	2%
	c.	10%
	d.	6%
	e.	1%

2. The value of an asset is determined by discounting the future cash flows generated by the asset using the:

	a.	inflation rate.
	b.	interest rate.
	c.	tax rate.
	d.	deficit rate.
	e.	surplus rate.