1.The Federal Reserve Bank stopped conducting open market operations in 2008.

True

False

2. The duration of a fixed coupon bond corresponds to:

		the coupon rate of the bond.
		the default risk of the bond.
		the price sensitivity of the bond when interest rate changes.

3.In a secondary market the prices are much more volatile than the correct value of the securities. However the cost of trading has fallen to zero. How would you characterize this market?

		Informationally efficient but not operationally efficient
		Operationally efficient but not informationally efficient
		Neither operationally or informationally efficient