15. The yield to maturity on bonds includes all of the following EXCEPT one. Which one? a. Interest rate risk b. Taxability c. Discount risk d. Default risk e. Expected future inflation 16.When adjusting for semiannual payments, you would a. Double the years and divide the rate by 12. b. Double the rate and divide the years in half. c. Double the years and divide the rate in half d. Multiply the rate times 1 and divide the years in half. e. Multiply the years times four and divide the rate by four. 17. The total value of a bond a. Will be above $1,000 if the YTM is greater than the coupon rate. b. Makes it a premium bond when the value is less than $1,000. c. Equals the total of the present values of the coupon stream and the face value. d. Will be above $1,000 whenever the bond is a good buy. e. Will always have a coupon rate greater than the market rate, 18. The rates that banks are required to use in quoting to customers is a. The Annual Percentage Rate b. The Fisher Effect c. The Effective Annual Rate d. The Effective Annual Yield e. None of the above 19. A 6% loan with monthly payments for 30 years a. Would have 330 payments. b. Would have a rate of 1/2% per month. C. Would have payments greater than $1,000 each. d. Would be difficult to pay off in 30 years. e. Would have payments twice a year. 20. If a bond is callable January - June each year, then a. The call dates can change from year to year. b. The bond CANNOT be called on March 1. c. The bond is call protected July - December each year. d. The bond CAN be called on September 30. e. The bond can be called anytime