1. Which of the following statements about zero-coupon bonds is FALSE?

A) No answer text provided.

B) A zero coupon bond may sell at a premium to par when interest rates decline.

C)The lower the price, the greater the return for a given maturity.

2. Which of the following statements is FALSE? Compared to a callable bond, a noncallable bond:

A) has more predictable cash flows.

B)No answer text provided.

C)provides a higher yield.

3.Which of the following investors faces the least inflation risk? An investor whose portfolio is concentrated in:

A) long-term treasury bonds.

B) Floating rate bonds.

C)No answer text provided.