9. Generally speaking, there is an inverse relationship between a bond price and interest rate. Likewise, if you know both the coupon rate and interest rate, you can tell if a bond is selling at Par, Premium, or Discount. As such, for a bond with a coupon rate of 4%; if market rate is 2%, the bond will be selling at _____. If market rate jumps to 6%, the bond will be selling at ______.

		a) Par; Premium
		b) Premium; Discount
		c) Discount; Premium
		d) Market; Discount

10. Kirk just received Ordinary Dividends of $1.25 per share from Ali Corp. As a tax-payer with a marginal tax rate of 27 percent, if he owns 1,000 shares of Ali Corp.; his tax liability on this investment should be_____.

		a) $912.50
		b) $250.00
		c) $337.50
		d) $187.50

11. Stocks of companies that have experienced and are expected to continue experiencing higher rates of growth in operations and earnings are called

		a) blue-chip stock.
		b) growth stock.
		c) income stock.
		d) speculative stock.

12. Bonds pay the face value to the investor when they are

		a) held after maturity.
		b) sold on the market before maturity.
		c) held until maturity.
		d) held 20 years.