1. T/F Duration is a measure of interest rate sensitivity and a bond with a duration of 9 should go up 9% if rates go down 1%

2. T/F A bond that matures in 8 years has a shorter duration then a bond that matures in 5 years all else equal.

3. T/F A bond with a 5% coupon has a shorter duration than a bond with a 4% coupon all else equal

4. T/F U.S. Treasury notes and bonds have no credit spread as they have no risk of default.

5. T/F If the risk free rate is 4% and my required rate of return is 9%, the credit spread is 5%