4 Which of the following is not be a possible cause if you observe a bond price is decreasing? A. YTM is increasing B. Default rating of the bond is upgraded C. More risks and uncertainties emerge D. Bond liquidity is worsening 5 Which of the following is a factor affecting bond price? A. Default risk B. Liquidity C. Yield to Maturity (YTM) D. All of above 6 Which of the following statement is NOT correct about the inverted yield curve? A. It is a signal for recession. B. Short term bond price is decreasing. C. YTM for short term bond is increasing. D. People's perceived risk level in the near future is low. 7 Given the following bond specifics, which of the (annual) YTM makes the coupon value equal to the par value? Maturity: 10 years Par value: $1,000 Couon rate (Annual): 7\% Semiannual bond A. 3.50% B. 5% C. 7% D. 14%