1. If a bonds market price decreases, its (a) yield-to-maturity increases. (b) coupon rate decreases. (c) yield-to-maturity decreases. (d) coupon rate decreases. 2. A pricing theorem for the bond market states that if a bonds yield does not change over its life, then the size of its discount or premium will ___ as its life gets shorter. (a) increases. (b) slightly increase. (c) decrease. (d) stay the same.

3. A pricing theorem for the bond market states that if a bonds yield does not change over its life, then the size of its discount or premium will ___ at an increasing rate as its life gets shorter. (a) slightly increase. (b) increase. (c) slightly decrease. (d). decrease