1. The duration of a 20-year, $1,000 bond at a COUPON rate of 8% is the duration of an identical bond at a coupon rate of 6%. a greater than b. less than c. equal to d. there is not enough information to tell 2. "Special or abnormal returns" refer to: a the Efficient Market Hypothesis. b gains below the market risk-adjusted average c. convertibles and warrants, etc. d. None of the above 3. Treasury strips provide return through a, increase in value over its life. b. high dividend yields c. indexing for inflation c. changing par value with the passage of time. 4. One reason a firm may repurchase its own shares is: a that management views the firm's future prospects to be bright. b. to go public. c. to qualify for an exchange listing. d. to adhere to SEC requirements on number of shares outstanding. S. call? When should an investor calculate both yield to maturity and yield to a. whenever there is a call provision b. when the sum of the present values of the interest payments exceeds the call price c. when the market price is greater than or equal to the call price. d. whenever the funds can be reinvested. Duration is used primarily as a measure of a. the relationship between maturity, coupon rate and market rate. b. bond price sensitivity to interest rate changes. c. the present value of investment inflows. d. none of the above. 7. Immunization is the process of to ensure an outcome. a. measuring bond price sensitivity to interest rates b. trying all investment decisions to a particular market interest rate c. tying all investment decisions to a duration period d. none of the above