1) We have a zero-coupon bond with 3 years to maturity, a par value of $1,000, and the yield to maturity of 12%. When the yield to maturity increases, the duration of his bond decreases. (10points) a. True b. False 2) Bonds sold in European markets and issued in euro are called Euro bond. (10points) a. True b. False 3) A put option on Dr. Pepper Snapple Group, Inc., has an exercise price of $40 The current stock price is $41. The put option is in the money-(10points) a. True b. False 4) A protective put is considered insurance for an investment in a portfolio of stocks. (10points) a. True b. False increases when one forecasts that the stock market will underperform Treasury bills. (10points) a. True b. False 5) A market-timing strategy is one in which asset allocation in the stock market