1. Which of the following statements regarding fixed-income securities is correct?

A. All fixed-income securities are free from default risk.

B. The current yield on a fixed-income security always equals its coupon rate.

C. Fixed-income securities include money market instruments.

D. Fixed-income securities tend to rise in price when interest rates rise.

2. You bought a stock nine months ago at $23 a share. Today, you sold that stock for $28.50 a share. The stock paid no dividends. What was your annualized rate of return?

A. 35.41%

B. 32.94%

C. 31.80%

D. 28.23%

3. Nine months ago, you bought 500 shares of a mutual fund at an offering price of $28 per share. The fund charges a front-end load of 3.5 percent and has total annual expenses of 1.24 percent. The fund's NAV today is $26.89. There were no fund distributions during these nine months. What's your holding period return on this investment?

A. -2%

B. 4%

C. 3.2%

D. -4%