34) The Franklin Company issued a 6% bordthree years ago at par value. The man tntre comparable bonds today is 5%. The Franklin and the bond sells at a Company bond currently pays a year in nterest A) $60, discount B) $60; premium C) $50; discount D) $50; premium 35) The most widely used calculated measure of interest rate in bond markets is the A) coupon rate. B) discount rate. C) yield to maturity. D) current yield. 36) If an investor pays $1,025 for a bond with a face value of $1,000, it follows that the current yield is than the coupon rate, and the investor will realize a capital if he holds the bona until maturity A) greater, gain B) less; gain C) greater, loss D) less; loss A) lower, lowerveld to maturity implies a D) None of the above. 38) If the yield on short-term securities is greater than the yield on comparable long-term securities, the 37) A B) higher; lower C) higher; higher yield curve will have a A) positive slope. B) negative slope. C) constant slope. D) zero slope. 39) A negatively sloped yield curve indicates that the economy A) is likely to show strong growth in the coming months. B) will not change noticeably in the coming months. C) is likely to show significant weakness in the coming months. D) None of the above