1. The interest earned on most municipal bonds is exempt from federal taxes.

	True
	False

2. Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 20 years. The bonds have an annual coupon rate of 12.0% with semi-annual coupon payments. You would expect a quoted annual return of 18.0% if you purchased these bonds. What are the bonds worth to you?

	$726.14
	$735.37
	$1,451.39
	$677.28
	$1,322.72

3. Bonds issued by corporations that are exposed to default risk are called:

	Treasury bonds.
	municipal bonds.
	corporate bonds.
	personal bonds.