5. A firm will exercise its option to call a bond if interest rates rise.

Question 5 options:

	a)	True
	b)	False

6. A Euro-bond is denominated in the currency of a European nation.

Question 6 options:

	a)	True
	b)	False

7. Default means the failure to meet any of the terms of a bond's indenture.

Question 7 options:

	a)	True
	b)	False

8. Virtually all bonds have each of the following except

Question 8 options:

	a)	interest payments
	b)	maturity date
	c)	voting rights
	d)	an indenture

9. If a bond has a call feature, it usually also has a call penalty, which must be paid to the bondholder in partial compensation for the early retirement of the bond.

Question 9 options:

	a)	True
	b)	False