12. Bonds will sell at a discount when: a) bonds are rated below AAA b) the coupon interest rate is lower than the market rate c) bonds carry a fixed coupon rate d) interest rates have fallen since issuance at par 13. The letter of transmittal would be included in what section of the CAFR? a) Introductory b) Statistical c) Financial d) None of the above 14. A serial bond structure is one in which: a) the interest rate for each maturity is reset periodically b) principal and interest payments are deferred for several years into the future c) a portion of the issue's aggregate par value matures each year d) principal is paid in a lump sum when the issue is retired 15. The main goal of the annual audit of the financial statement is to: a) detect all cases of fraud. b) evaluate the effectiveness of internal control. c) assure the financial statements are free of material misstatements. d) All of the above