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1. The long-term bonds issued by state and local governments in the United States are called bonds. a.Treasuryb.municipalc.floating-rate d. junk e. zero coupon 2. A

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1. The long-term bonds issued by state and local governments in the United States are called bonds. a.Treasuryb.municipalc.floating-rate d. junk e. zero coupon 2. A bond that pays a variable amount of coupon interest over time is called a bond. a. Treasury b. municipal c. floating-rate d. junk e. zero coupon 3. A bond which, at the election of the holder, can be swapped for a fixed number of shares of common stock at any time prior to the bond's maturity is called a bond. a. zero coupon b. callable c. putable d. convertible e. warrant 4. Parts of the indenture limiting certain actions that might be taken during the term of the loan to protect the interests of the lender are called: a. trustee relationships. b. sinking funds provisions. c. bond ratings. d. deferred call provisions. e. protective covenants. 5. All else constant, a coupon bond that is selling at a premium, must have: a. a coupon rate that is equal to the yield to maturity. b. a market price that is less than par value. c. semi-annual interest payments. d. a yield to maturity that is less than the coupon rate. e. a coupon rate that is less than the yield to maturity

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