1. Some (but not all) bonds are convertible. The conversion privilege is exercised at whose option?

	A.	The issuing company (i.e. GE) decides whether or not to convert the bonds
	B.	The individual investor (bondholder) decides whether or not to convert the bonds
	C.	The Board of Directors decides whether or not to convert the bonds
	D.	The SEC (Securities & Exchange Commission) decides whether or not to convert the bonds

2. All of the following are true EXCEPT:

A. The call provision is at the option of the issuing corporation

	B.	To call a bond is to pay it off (or retire it) prior to its maturity date
	C.	If called, bonds are typically called at a discount

3. Which of the following statements best describes the relationship between bond prices and market rates of interest?

A. When market interest rates rise, bond prices rise

	B.	When market interest rates fall, bond prices rise
		C. Bond prices never change---they are set by the bond indenture