25. A zero coupon bond refers to a bond which: Does not pay any coupon payments because the issuer is in default, Promises a single future payment. Pays coupons only once a year. Pays coupons only if the bond price is above face value. A) B) 26. When a loan is said to be amortized, it means the principal and interest are paid off by the borrower over the life of the loan. 27. Which of the following statements is most true? A) Yield to maturity is the same as the coupon rate if the bond is held to maturity. Yield to maturity is the same as the coupon rate. Yield to maturity is the same as the coupon rate if the bond is purchased for face value. Yield to maturity is the same as the coupon rate if the bond is purchased for face value and held to maturity. 28. Bond prices and yields move together inversely. 29. If the demand for bonds exceeds the supply of bonds, bond prices and yields would increase