Consider the following statements:

Statement 1: Commercial paper is a source of interim funding for long-term projects.

Statement 2: There is no secondary market for trading commercial paper.

Which of the following is most likely?

a)Only statement 1 is correct.

b)Only statement 2 is correct.

c)Both statements are correct.

Consider the following statements:

Statement 1: Generally speaking, non-sovereign bonds offer higher yields than sovereign bonds.

Statement 2: Generally speaking, more seasoned sovereign issues tend to trade less frequently.

Which of the following is most likely?

a)Only statement 1 is correct.

b)Only statement 2 is correct.

c)Both statements are correct.

Consider the following statements:

Statement 1: Generally speaking, emerging market bonds offer lower yields than developed market bonds.

Statement 2: Generally speaking, coupon rates on taxexempt bonds are lower than those on otherwise identical taxable bonds.

Which of the following is most likely?

a)Only statement 1 is correct.

b)Only statement 2 is correct.

c)Both statements are correct.

Consider the following statements:

Statement 1: A liquid secondary market is one that enables investors to sell bonds at a price close to their purchase price.

Statement 2: Privatelyplaced bonds tend to be relatively illiquid.

Which of the following is most likely?

a)Only statement 1 is incorrect.

b)Only statement 2 is incorrect.

c)Both statements are correct.