1. A municipal bond offers a 5% yield. Supposed an investor has marginal tax rate of 20%, what is the bonds equivalent taxable yield.

A.6.25% B.0.80% C.4.00% D.None is correct

2. Which of the following embedded options in a fixed income security can benefit the issuer?

A. Conversion option.

B. Put option. C. Call option. D. A and B are correct.

Which of the following statements is TRUE about a single-price auction?

A. Non-competitive bidder can guarantee their quantity. B. Competitive bidders can guarantee their quantity. C. Competitive bidders pay less than or equal to the price they bid.

D. A and C are correct.