1. Suppose you are the finance executive at Coca-Cola in Atlanta. Coca-Cola wants to issue a 10-year bond of face value US$3Billion to finance capital expenditure but would like to recall the bond at will before the bond matures. Which of these would you recommend to your chief executive officer (CEO) about making that happen?
   1. Write a letter to the bondholders before maturity
   2. Include call provisions in the bond contract at the time of bond issue
   3. Mis-specify the maturity date in the bond contract
   4. Exclude a maturity date in the bond contract

2. Which of these is TRUE of the nominal risk-free rate and the real risk-free rate?
   1. Real risk-free rate must always include inflation premium
   2. Nominal risk-free rate includes inflation while the real risk-free rate does not
   3. Real risk-free rate excludes the product of inflation and inflation premium
   4. None of the above