$22.$ The greater the difference between the par value of a bond and the purchase price of the bond the:

a$.$ lower the discount rate on the bond.

b$.$ greater the discount rate on the bond.

c$.$ lower the term to maturity is on the bond.

d$.$ greater the term to maturity is on the bond.

$23.$ Low$-$coupon and long maturity bonds maturities are:

a$.$ Least sensitive to changes in rate of return

b$.$ Most sensitive to changes in rate of return

c$.$ Not sensitive to changes in rate of return

d$.$ Least sensitive to changes in rate of return compared to T $-$ bills

$24.$ An expected decrease in demand for loanable funds, along with an increase in the supply of loanable funds will cause interest rates to $\_\_\_\_$ and prices of existing bonds to $\_\_\_\_$

a$.$ increase; increase

b$.$ increase; decrease

c$.$ decrease; decrease

d$.$ decrease; increase

$25.$ A fixed interest rate bond was sold at par value two years ago. Today, market interest rates are much lower now than when this bond was originally issued. The interest rate payments for this bond are $\_\_\_\_\_$ similar fixed rate bonds sold today and $\_\_\_\_\_$ the present value of the bonds will be $\_\_\_\_$ its par value.

a$.$ above; above

b$.$ above; below

c$.$ below: below

d$.$ below; above