18&19

bonas are often in denominations of $5,000. (Tor F) 15. All bonds pay regular interest checks. (T or F) 16. Interest from corporate bonds is taxable. (T or F) 17. Bonds with a high degree of risk often pay a lower-than-normal interest rate. (Tor F) For Problems 18 and 19, assume you own a 25-year 7% bond that pays interest annually and matures in 18 years. You are thinking about selling the 14 bond. 18. If the prevailing rate for similar bonds is 8.5%, buyers should be willing to pay a premium for your bond. (T or F) 19. If the prevailing rate for similar bonds is 7%, your bond will be priced at (a) par, (b) a discount, or (C) a premium. For Problems 20-26, refer to the following bond quote. Cur Yld Bond Vol Net Chg Close + 11514 232 7.27 IBM 838 19