Part B: 1) Unlike most money market securities, commercial paper A. Is not generally traded in a secondary market. B. Usually has a term to maturity that is longer than a year. C. Is not popular with most money market investors because of the high default risk. D. All of the above 2) Financial guarantees A. are insurance policies to back bond issues. B. are purchased by financially weaker security issuers. C. lower the risk of the bonds covered by the guarantee. D. do all of the above. 3) To sell an old bond when interest rates have the holder will have to the price of the bond until the yield to the buyer is the same as the market rate. A. risen; lower B. risen; raise C. fallen; lower D. risen; inflate 4) The current yield on a $6,000. 10 percent coupon bond selling for $5,000 is A. 5%. B. 10% C. 12% D. 15% and bond values 5) Call provisions will be exercised when interest rates A. riserise B. fall; rise C. rise; fall D. fall: fall