Explain your answers.

T/F: If the yield curve (aka term structure) is flat at, for example, 6%, then all forward interest rates are zero.

T/F: The time value of an option is greatest when its moneyness (S/X) is near 1, and least when it is deep-in or deep-out-of-the-money.

T/F: Municipal bonds are always fully exempt from federal taxation; Treasury securities are always fully exempt from state and local taxation.

T/F: A bond issue sold by Toyota in Tokyo and denominated in yen, would be called a "Samurai" bond by most market participants.