1. Omega Software Corporation's bond with a face value of $1,000 is currently selling at a premium in the financial markets. If the bond's yield to maturity is 11.5 percent, then the bond's:

	a.	maturity value will be greater than $1,000.
	b.	coupon rate of interest will be equal to 11.5 percent.
	c.	coupon rate of interest will be less than 11.5 percent.
	d.	maturity value will be less than $1,000.
	e.	coupon rate of interest will be greater than 11.5 percent.

2. A corporate bond that yields 12% includes a risk-free rate of 7% and a default premium of 3%. The bond's maturity risk premium is _____.

	a.	4%
	b.	2%
	c.	10%
	d.	6%
	e.	1%

3. The value of an asset is determined by discounting the future cash flows generated by the asset using the:

	a.	inflation rate.
	b.	interest rate.
	c.	tax rate.
	d.	deficit rate.
	e.	surplus rate.