1. Bonds issued by the U.S. Treasury are referred to as benchmark bonds because:

   		they are always purchased for a premium.
   		they are highly liquid and virtually free of default risk.
   		all bonds from national governments are labeled as benchmark bonds.
   		all bonds from the U.S. government have the same rate of interest.

2. When the price of a bond is above face value, the yield to maturity:

   		is below the coupon rate.
   		will be above the coupon rate.
   		will equal the current yield.
   		will equal the coupon rate.