1. A long-term note may be secured by a document called a (a) premium. (b) debenture. (c) bond (d) mortgage. 2001010 2. A bond with a face value of $100,000 and a quoted price of 102.25 would have a selling price of (a) $ 97,800. (b) $100,000 (c) $102,250. (d) $122,250. 3. If the market interest rate is 4.5%, a $100,000, 5.6%, 10-year bond that pays interest semi-annually would sell at an amount (a) less than face value. (b) equal to the face value. (c) greater than face value. (d) that cannot be determined. 4. $5 million, 8%, 10-year bonds are issued when the market rate is 6%. Interest will be paid semi-annually. When calculating the issue price of the bond, the interest rate to be used to calculate the present value of the face amount and the present value of the periodic interest payments is (a) 8%. (b) 6%. (c) 4%. (d) 3%