1. New property may become subject to a security provision by a(n):

A. acceleration clause.

B. debenture.

C. subordinated debenture.

D. after acquired property clause.

2. The bond yield found by dividing the annual interest payment by the current price of a bond is called the:

A. current yield.

B. Yield to maturity.

C. Approximate yield to maturity.

D. Coupon rate.

3. The appropriate discount rate to use in bond refunding evaluation is the:

A. cost of capital.

B. difference between the old interest rate and the new interest rate on the debt.

C. interest rate of new debt.

D. after-tax rate of the new debt.