1. If the economy falls into a recession, interest rates would likely increase. True False 2. The yield on a 2-year corporate bond should always exceed the yield on a 2-year Treasury bond. True False 3. Bond prices respond to changes in the market rate by moving in the same direction as the change. True False 4. Coupon rates and payments are generally fixed throughout the life of a bond regardless of the economic or market conditions. True False 5. Bond ratings are not the primary measure of default risk. True False to the interest rate on a 10-year Treasury