1. There is a (n) ________relationship between the value of outstanding bonds and interest rates.

A. direct

B. inverse

C. positive

D. no relationship exists

2. One half of a percent is equal to ______.

A. 25 basis points

B. 100 basis points

C. 50 basis points

D. none of the above

3. Bond refunding is attractive to a company when the current market interest rates are ___________ coupon rates on outstanding debt.

A. the same as

B. lower than

C. higher than

D. none of the above