16) If you choese a zero-coupon bond with a matirity that matches your investment horizon, which of the following statements is (arc) correct? 16) I. You will have no interest rate risk on this bond. II. In the absence of default, you can be sure you will earn the promised yield rate. III. The duration of your bond is less than the tirne to your investment horizon. A) II and III only B) I, IS, and IOI C) I and II only D) I only 17) The bid price of a Treasury bill is A) grearer than the ask price of the Treasury bill expressed in dollar terms B) the price at which the dealer in Treasury bills is willing to sell the bill D) the price at which the investor can buy the Treasury bill 18) Investors require a risk premiuin as compensation forbeasury bill A) residual risk C) alpha risk 19) An adjusted beta will be A) closer to 0 B) higher than the unadjusted beta. B) unsystematic risk D) systemaric risk 18) 17) 27) The constant-growth dividend discount model (DDM) can be used only when the A) growth rate is greater than or equal to the required return B) growth rate is greater than the required return 9 growth rate is less than the required return D) growth rate is less than or equal to the required return 2) Suppose you pay $9,800 for a $10,000 par Treasury bill matuming in 2 months. What is 2 ) the annual percentage rate of return for this investment? A) 72.89% B) 12% C) 12.24% D) 2049/0