10. What is the capital limitation for a Type I bond, such as a Treasury note? a. No limit b. 10% of capital and surplus c. 25% of capital and surplus

11. Which type of security is typically sold in tranches? a. CMOs b. Municipal bonds c. Treasury securities d. Corporate bonds

12. If you buy a fixed-rate bond at par (100) and interest rates rise, the bond will sell for a. a premium b. a discount

13. Gains and losses in the value of bonds held in which category must be directly included in net income? a. Trading b. Available for Sale c. Held to Maturity