4. Which one of the following is consistent with market segmentation theory?

a. Current interest rate reflects financial market's proiections of future interest rates b. O Lenders ask for higher interest rate for loaning funds over long-term versus short term. c. Interest rates on loans change because of investors preference of maturity. d. Expected future interest rate is implied by current interest rates.

9.What is the current price of a $1000 face value,180-day Treasury bill,that is quoted at a bank discount yield of 2.77 percent?

$972.76 $986.15 $979.37 $991.25

15.Which one of the following statements about callable bonds is correct? a. Callable bonds are more apt to be called if market interest rates rise. b. Callable bonds can be called at any time. c. Callable bonds are generally priced lower than comparable noncallable bonds. d. Callable bonds are generally called at the market price at the time of the call.