1.Is it true that a U.S. Treasury security is risk-free?

2. With regard to bid and ask prices on a Treasury bond, is it possible for the bid price to be higher? Why or why not?

3. A company is contemplating a long-term bond issue. It is debating whether to include a call provision. What are the benefits to the company from including a call provision? What are the costs? How do these answers change for a put revision?

4. What is different between the term structure of interest rates and the yield curve?

5. Why is it that municipal bonds are not taxed at the federal level, but are taxable across state lines? Why are U.S. Treasury bonds not taxable at the state level? (You may need to dust off the history books for this one.)

1. What are the relevant cash flows for valuing a share of common stock?

2. Does a value of a share stock depend on how long you expect to keep it?

3. What are the rights shareholder have?

4. Is a preferred stock debt or equity?