1. If an investor is in the 22 percent income tax bracket and can earn 5 percent on a corporate bond, then 3 percent on a municipal bond is attractive.

True

False

2. Convertible bonds sell for a premium over their

1. market price 2. value as stock 3. value as debt

	a.	1 and 3
	b.	1, 2, and 3
	c.	2 and 3
	d.	1 and 2