(1) The Yield to Maturity (YTM) of a bond is: (a) The True Interest Cost of the issued bonds; (b) The sum of the Current Yield (CY) and Capital Gains Yield (CGY); (c) The rate of return which a bondholder will earn if the bond is held until it matures; (d) All of the above are equivalent to the YTM.

(2) For a bond purchased at par and held to maturity: (a) The current yield and capital gains yield remain unchanged; (b) The current yield rises each year, while the capital gains yield falls; (c) The current yield falls each year, while the capital gains yield rises; (d) All of the above is true.

(3) Revenue adequacy refers to: (a) the absolute size of the tax base; (b) the revenue yield in rough comparison to the expense of collecting the tax; (c) the amount of taxes collected, in comparison to other revenue sources; (d) none of the above.