1. A one percent increase in the yield to maturity will have the largest effect on the price of which of the following bonds?

   	a.	A 30 year coupon bond
   	b.	A one-year zero coupon bond
   	c.	A consol
   	d.	It will have the same effect on the price of all of the above bonds

2. Which of the following must be true if the yield to maturity is greater than the coupon rate of a coupon bond?

   	a.	The price of the bond is greater than its par value
   	b.	The price of the bond is less than the par value of the bond
   	c.	The price of the bond is less than the present value of the bond
   	d.	The price of the bond is greater than the present value of the bond