1.1) A fixed-income security is defined as: A) a debt obligation that pays a fixed rate of return for a one-year period of time. B) common or preferred stock that pays a fixed annual dividend. C) a long-term debt obligation that pays scheduled fixed payments. D) long-term debt issued solely by a federal or state government. E) any security originally issued as either debt or equity that pays a fixed, pre-set payment. 2. The annual interest payment divided by the current price of a bond is called the A. coupon rate. B. current yield. C. yield-to-maturity D. yield-to-market. E.market yield. 3. A financial asset that represents a claim on another financial asset is classified as a asset. A. secondary B. optioned C. contracted D. derivative E. primary 4. A call option is an agreement that: A. obligates both the buyer and seller to a future transaction B. grants the seller the right to buy a security at a predetermined price. C. gives the buyer the right to purchase an asset at some point in the future. D. grants the seller the right, but not the obligation, to sell an asset. E presets a price but not a time period. 5. The price paid to purchase an option contract is called the A. strike price B. option premium C. exercise price. D. future premium. E. current yield. 6. The amount of money per share that will be received when a put option on stock is exercised is called the price. A. market B. stock C. strike D. future E. obligated