1. Yesterday I bought shares in Kellogg's stock. Today, Kellogg's stock increased by 3% while the overall market (the S&P 500) went up by 1% based on a positive press release which indicating Kelloggs would have lower expenses over the next year. Since Kelloggs went up buy more than the overall market, it was undervalued yesterday which proves markets are not efficient. True or False?

2. You have just purchased a 9% coupon bond with 25 years remaining until maturity for $1131.25. The bond is callable in 5 years for $1045. Based on this, the Yield-to-Call is:

- 6.65%

- 7.85%

- 7.80%

- 5.93%

- None of the answers are correct