Commercial paper, Treasury bills, and Fed funds are all quoted as discount yields.

True

False

In the T-bill auction process, the stop-out price is guaranteed to _____________ and given quantity is guaranteed to ____________.

	A.	a noncompetitive bidder; a competitive bidder
	B.	a noncompetitive bidder; all bidders
	C.	a competitive bidder; a noncompetitive bidder
	D.	all bidders; a noncompetitive bidder

Which of the following bonds will be most sensitive to a change in interest rates?

	A.	A 20-year bond with coupon rate 10%.
	B.	A 5-year bond with coupon rate 10%.
	C.	A 30-year bond with coupon rate 10%.
	D.	A 10-year bond with coupon rate 10%.