Which of the following statements about callable bonds is not true?

		Calls usually benefit the bondholder.
		Investors are notified when bonds are called.
		Callable bonds have higher yields than comparable noncallable bonds.
		The call price is usually above the bond's par value.

1. The yield differentials between an AAA-rated corporate bond and an otherwise similar BBB-rated corporate bond may be explained by

   		default risk.
   		marketability.
   		tax treatment.
   		term to maturity.

2. Which of the following statements is true?

   		The more marketable a security, the higher its yield.
   		The longer the security's term to maturity, the greater its yield.
   		Taxable bonds have to offer higher before-tax yields than comparable tax-exempt bonds.
   		Putable bonds offer higher yields than similar non-putable bonds