1. Which of the following statements is true for zero-coupon bonds?
   1. These bonds are issued at premium from their face value and redeemed at maturity for their face value.
   2. These bonds are issued at an original discount from their face value and redeemed at maturity for their face value.
   3. These bonds are issued at their face value and redeemed at maturity for a premium.
   4. These bonds are issued at their face value and redeemed at maturity for a discount.

Answer:______

1. Which of the following is true for bond risk?
   1. A bond holder is faced with two major risks: credit risk or market risk, and interest-rate risk or default risk.
   2. A bond holder is faced with two major risks: credit risk or default risk, and interest-rate risk or market risk.
   3. A bond holder is faced with two major risks: credit risk or interest-rate risk, and default risk or market risk.
   4. None of the above is true.

Answer:______

1. Bonds that have been assigned to one of the four top ratings (AAA, double A, single A, and triple B) are called?
   1. Speculative-grade bonds
   2. High-yield bonds
   3. Investment-grade bonds
   4. Junk bonds

Answer:______