1. The total return on a plain vanilla (no-frills) bond, if sold prior to maturity, depends on three factors. Which of the following does not belong? Indicate by letter. a. Price change b. Coupon change c. Interest earned d. Interest-on-the-interest earned

2. True or False: Duration Drift has to do with the natural tendency for Duration to increase over time.

3. True or False: When a bonds coupon is paid, its Duration experiences a hiccup.

4. True or False: The hiccup causes duration to increase momentarily.

5. A high- or low-coupon bond will have greater duration. Which is it?