1.

Which of the following statements is most accurate with respect to forward and futures contracts?

Question 1 options:

	A futures contract is a type of forward agreement, but futures contracts have highly standardized contract terms.
	A forward contract refers to a futures contract traded outside the United States.
	A forward contract is another term for, and is identical to, a futures contract.

2.

A company issues 2 bonds, Bond A and Bond B. Bond A pays semi-annual coupon payments and Bond B pays annual coupon payments. All else equal, which bond will have a higher price?

Question 2 options:

	Same Price
	Bond B
	Bond A

3.

Which of the following statements is false?

Question 3 options:

	A bond trades at par when its coupon rate is equal to its yield to maturity.
	The par value of a Bond is usually $1,000
	The price of the bond will drop by the amount of the coupon immediately after the coupon is paid.
	If a coupon bond's yield to maturity exceeds its coupon rate, the present value of its cash flows at the yield to maturity will be greater than its face value.

4.

Which of the following is not true about the payoff of the holder of a short position in a forward contract?

Question 4 options:

	The lower the spot price at the time of expiration, the higher is the payoff.
	The higher the spot price at the time of expiration, the lower is the payoff.
	The payoff is equal to the difference between the spot price of the underlying at the contract initiation and the forward price of the underlying.