1.Which of the following statements about a callable corporate bond is most likely correct:

a) A corporation is more likely to call back a bond when interest rates decrease

b) An investor is more likely to call back a bond when interest rates decrease

c) An investor is more likely to call back a bond when interest rates increase

d) An corporation is more likely to call back a bond when interest rates increase

e) The US Treasury is more likely to call back a bond when interest rates increase

2.Assuming the Yield Curve is Normal (Upward Sloping), which of the following bond's would have the highest credit risk?

a) 5Y High Yield Corporate

b) 5Y Investment Grade Corporate

c) 10Y High Yield Corporate

d) 10Y Investment Grade Corporate

e) 10Y Government Issued Bond

3.Which of the following statements is most likely TRUE:

a) The current FED Chair is Janet Yellen

b) ZIRP ended in December of 2018 and the federal funds rate remains well above zero to this day (January 18th 2021)

c) If you are nearing retirement and the yield curve inverts, a prudent investor would take money out of stocks and put the money into bonds

d) Too much QE in the US could lead to a lower standard of living for future generations in US

e) In response to COVID-19, the FED has undergone another period of QE and passed several stimulus bills through Congress