1. If a bond has a 3% coupon rate and the current market interest rate is 4%, then the bond will be sold at a premium. True/False 2. If a bond has a 3% coupon rate and the current market interest rate is 4%, then the bond will be sold at a discount. True/False 3. If a bond has a 3% coupon rate and the current market interest rate is 4%, then the bond will be sold at face value. True/False 4. A 2 year treasury note will mature every 6 months. True/False 5. A 2 year treasury note pays interest every 6 months. True/False 6. A 2 Year Treasury Note with a face value of $1000 has a coupon rate of 2%. If current market rates are 3% what is the current par value of the bond? _________ 7. A 2 Year Treasury Note with a par value of $1000 has a coupon rate of 3%. If current market rates are 5% what is the current face value of the bond? __________ 8. A 2 Year Treasury Note with a face value of $1000 has a coupon rate of 5%. If current market rates are 2% what is the current par value of the bond? __________ 9. A 1 Year Treasury note matures after how many months from its issuance? __________ 10. If a $1000 Treasury Note has a coupon rate of 5%. What is the amount of the semi-annual interest payments? __________

11. This yield curve has its highest yields in the middle of its maturity range. a. Normal Yield Curve b. Flat Yield Curve c. Inverted Yield Curve d. Humped Yield Curve 12. This yield curve indicates market uncertainty across all range of maturities. a. Inverted Yield Curve b.Normal Yield Curve c.Humped Yield Curve d. Flat Yield Curve 13. This yield curve indicates oncoming recession or deceleration of economic growth. a.Normal Yield Curve b.Inverted Yield Curve c.Flat Yield Curve d.Humped Yield Curve 14. This All-American Yield Curve indicates a positive economic outlook across the long run, much like the outlook for Chase Crenwelge. a.Humped Yield Curve b.Flat Yield Curve c.Normal Yield Curve d.Inverted Yield Curve 15. If the 30 Year Treasury Bond is yielding a rate of return lower than the 10 Year Treasury Bond, you have a flat yield curve. True/False 16. If the 30 Year Treasury Bond is yielding a rate of return lower than the 10 Year Treasury Bond, you have a normal yield curve. True/False 17. If the 20 Year Bond is yielding a rate higher than the 10 Year Bond and higher than the 30 Year Bond, then you have a humped yield curve. True/False 18. If the 10 Year, 20 Year, and 30 Year Bond all yield the same rate, you have a flat yield curve. True/False 19. A ______ yield curve signals uncertainty across all ranges of time in an economy. __________ 20. A ______ yield curve where yields rise across time reflects a generally positive outlook concerning economic growth for the future. __________