Question 14 options:

The default risk premium

	captures the probability that the issuer will not pay interests or principal at the stated time and stated amount.
	refers to the risk of income decline due to a drop in interests rates
	reflects the risk of a decline in bond values due to rising interests rates
	B and C
	none of the above

Question 15 options:

You have just bought a house and have taken out a mortgage (an installment) loan for $500,000. This is a 30-year loan that requires monthly payments and the first payment is due one month from today. The APR for the loan is 24%. You are interested to know how much of your 200^th monthly payment will go toward the repayment of principal? That amount is _______________

	$762.65
	$9,586.98
	$625.64
	$9,494.78
	$513.24
	$9,382.38
	$421.04
	$9,245.37