1. A Treasury bond's price is comprised of which components?

I. A lump-sum cash flow

II. An annuity due

III. An ordinary annuity

IV. A perpetuity

		II and III only
		I and IV only wrong
		I only wrong
		I and II only

2. Which bond would have the greatest interest rate risk?

		10-year, 5% coupon bond
		5 year, Zero-coupon bond wrong
		5 year, 5% coupon bond
		10 year, Zero-coupon bond