Treasury Inflation-Protected Securities (TIPS) have __________ interest payments unlike the _________ interest payments associated with traditional T-bonds.

A. zero; fixed

B. variable; fixed

C none of the above

D. fixed; variable

Two cornerstone of bond rating analysis are __________ and __________.

B. coupon rate; character

C. convexity; capacity

A. character; capacity

D. conditions; convexity

Two cornerstone of bond rating analysis are __________ and __________.

A. coupon rate; character

B. convexity; capacity

C. character; capacity

D. conditions; convexity

Assume that your company produces oil and asks you how it can lock in the price it receives for a barrel of oil 3 months from now in order to decrease price risk. You might suggest taking a __________ position in a futures contract.

A. long

B. time to expiration

C. short

D. holding periodv