UNDERSTAND CONCEPTS Determine the best answer for each of the following questions. 1. The federal government debt security with the longest maturity is the a. treasury bill b. treasury note c. treasury bond d. municipal bond 2. A bond selling for $1,000 and earning interest of $45 would have a current yield of percent. a. 10 b. 45 c. 4.5 d. 40.5 3. A ? bond allows investors to exchange the bond for common stock in the same company. a. debenture b. convertible c. mortgage d. callable 4. True or False? A mortgage bond is considered a secured loan. 5. True or False? The bond rating of a corporate bond is based on the earning power of the issuing company