11 . If the quantity of bonds supplied exceeds the quantity of bonds demanded, bond prices would:

Multiple Choice

• rise and yields would fall.
• fall and yields would rise.
• rise but yields will remain constant.
• fall and yields would fall.

12 . The riskiness of bonds due to changes in interest rates is

Multiple Choice

• interest-rate risk.
• exchange-rate risk.
• price risk.
• asset risk.