Please answer the following questions.

1. Are the following bonds issued at par, premium, or discount?

	Discount, premium or par
Coupon rate is 3%; yield is 4%
Annual coupon of $100; yield to maturity of 9%
Semi-annual coupon of $40; yield of 8%

2. Bond A sells for $990 and Bond B sells for $1010. Both bonds have a yield of 4%. Which one has the higher coupon? (Please answer A, B or A=B.)

3. Bond A is a par bond and Bond B is a discount bond. They are of the same riks. Which one has the higher coupon? (Please answer A, B or A=B.)

4. Bonds of the same risk must have the same after-tax yield. (True or False.)

5. A municipal bond should offer a higher yield to maturity than a similar corporate bond because of the tax advantage. (True or False.)

6. A bond with semi-annual payments of $25 has a higher coupon rate than a bond with annual payment of $40. (True or False.)

7. A bond with semi-annual payments of $25 has a higher coupon rate than a bond with annual payment of $50. (True or False.)

8. If you pay a very high tax rate you would most likely prefer a municipal bond over a similar corporate bond. (True or False.)