1)Which of the following statements about a bond are true?

i. A bond is a fixed-income security

ii. The bond's interest payments vary each year with the market

iii. A bond acts like an interest-only loan

Only i

i and ii

i and iii

ii and iii

All of them

None of them

Bookmark question for later

2)What is the lowest grade of the investment grade bonds?

AAA

BBB

B

C

D

None of the above

3)A $1,000 face value bond is currently sold for $930. If it has 5 years until the maturity and pays 6% coupon annually, what is the yield-to-maturity of the bond? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)

4)If a $1,000 face value bond is sold at $956.32 and has a coupon rate of 10%, which one of the following rate is the most feasible yield to maturity of this bond?

10.83%

10.00%

9.53%

7.56%

None of the above