1)Coupon bond yields and forward interest rates can be observed directly from market transactions.

• True
• False

2)The coupon rate is the rate of interest that the investors require, which can be different from the periodic interest payment made by the bond issuer, often called the coupon payment.

• True
• False

3)Fixed-income classifications by type of issuer include corporate, and government, and structured finance instruments.

• True
• False

4)Many jurisdictions periodically tax interest income during the bond lifetime, although the holder of the bond does not receive any cash until maturity.

• True
• False