d. The bonds have zero interest rate risk because the bonds pay no interest. 0.

Question

d. The bonds have zero interest rate risk because the bonds pay no interest. 0. For a fixed rale bond, which of the these will ever change over the life of a bond? a. Coupon rate b. Yield to maturity c. Time to maturity L. n whch sitution wou illpBiety used? When the market interest rates have risen dramatically Just before a bond's maturity date when the coupon rate has fallen over the life of the bond. When the market interest rates have fallen dramatically. a. b. c. 12. If the coupon rate of a bond is greater than its yield to maturity (or required return), then the bond should sell at par value. b. a discount. c. a premium. d. book value a. 13. Bonds rated by Standard &Poor;'s are considered investment grade

Explanation / Answer

10. Coupon rate - fixed bond is which pays a fixed coupon rate

11.

a- when the market interest rates have risen dramatically. So that you can invest the money at a higher rate.

12.

c- Premium

If coupon rate> YTM, bond should trade at a value higher than par value.

13.

c - BBB or A

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