28. (0.2 point) If a bond's yield-to-maturity is greater than the appropriate yield-to-maturity, the bond (a) could have a positive or negative NPV. (b) will have a positive NPV. (c) will have an intrinsic value less than its market price. (d) will have an intrinsic value equal to its market price.

42. (0.2 point) Altman's study of bond mortality fund

 (a) most defaults occur within 2 years of issuance. (b) in general, the lower the rating at the time of issue, the higher the default rate. (c) that no AAA rated bonds have defaulted. (d) AA bonds are the best investment based on lack of defaults. 

45. (0.2 point) Bond rating systems (a) report levels of risk relative to other bonds. (b) have little relationship to the actual risk. (c) reclassify all bonds when the economy changes. (d) maintain a fixed yield spread between rating levels.