U.S. Savings Bonds are sold at a discount. The face value of the bond represents its value on its
future maturity date. Therefore,
A) the current price of a 50 face value bond that matures in 10 years will be greater than the
current price of a 50 face value bond that matures in 5 years.
B) the current price of a 50 face value bond that matures in 10 years will be less than the current
price of a 50 face value bond that matures in 5 years.
C) the current price of a 50 face value bond will be higher if interest rates increase.
D) the current prices of all 50 face value bonds will be the same, regardless of their maturity
dates because they will all be worth 50 in the future.
Question 2
All of the following statements about the termination provisions of the PAP are true EXCEPT
A) The insured can cancel the policy for any reason.
B) The insurer can cancel a newly-written policy if it has been in force for fewer than 60 days.
C) The insurer can cancel the policy after it has been in force for 60 days only if the insured has three or more traffic violations.
D) The insurer can refuse to renew the policy at its annual anniversary date as long as proper notice is given prior to the end of the policy period.
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