Question 28: You just performed a 2-stage stock valuation on MSFT's stock and found that the firm's fair stock price is $185. You then just looked up MSFT's last price on Yahoo! Finance and see that the firm's last trade was at $202.68. Will you consider buying MSFT's stock based on this information? (a) Yes (b) No Question 29: Please rate the following statement as TRUE OR FALSE: "All else equal, a fixed-rate bond's degree of interest rate risk increases with the bond's maturity." 2 (a) TRUE (b) FALSE Question 30: What is the biggest benefit of municipal bonds, also known as "Munis", relative to federal US government issued bonds (also known as "treasuries")? (a) Local municipalities offer much higher yields on debt than the federal government, regardless of the credit risk of the municipality. (b) Local municipalities offer debt with coupons that pay for a much longer duration than federal government debt. The interest on municipal bonds is never taxable federally, and is oftentimes also not taxable at the state or local (city) level, and in such cases is deemed "triple tax-free". None of the above correctly represents the main advantage of municipal debt relative to federal (US) government debt from the perspective of bond investors