13. Which of the following has the highest interest rate risk? a. b. c. d. 10-year Corporate bond with rating of AAA 10-year Treasury bond 10-year convertible bond 10-year zero coupon bond 14. Which of the following statements is/are INCORRECT? d sells well above par value when yield to maturity is higher than its coupon rate. a. Bon Convertible bond can be converted into certain amount of cash at the discretion of CEO of the firm. b. c. Most bonds are trading in the NYSE market. d. All of the statements above are incorrect e. Statements b and c are incorrect. 15. Which of the following statements is/are most CORRECT? a. A yield curve depicts an inverse relationship between bond price and yield to maturity b. The primary purpose of protective covenants is to help protect bondholders from issuer actions. C. Junk bonds typically provide a lower yield to maturity than investment grade bonds. d. Sinking funds may be used to purchase bonds in the open market. e. Both b and d are correct