6. If you rank the following securities from most risky to least risky, the correct ranking is a) junk bonds, debenture bond, mortgage bond, treasury bond, treasury note b) treasury note, treasury bond, mortgage bond, debenture bond, junk bond c) debenture bond, mortgage bond, junk bond, treasury note, treasury bond d) mortgage bond, junk bond, debenture bond, treasury note, treasury bond e) junk bonds, debenture bond, treasury bond, mortgage bond, treasury note 7. A bond sold five weeks ago for $1,100. The bond is worth $1,050 in today's market. Assuming no changes in risk, which of the following is false? A) The bond has less maturity today than it did five weeks ago. B) The bond has a smaller premium today than it did five weeks ago. C) Interest rates must be higher now than they were five weeks ago. D) The bond's coupon rate has increased from five weeks ago. E) The coupon payment of the bond must have increased. 8. A bond with a face value of $1,000 has annual coupon payments of $100 and was issued 7 years ago. The bond currently sells for $1,000 and has 8 years remaining to maturity. This bond's must be 10%. I. yield to maturity (market interest rate) II. market premium III. coupon rate A) I only B) I and II only C) 111 only D) I and III only E) I, II and III 9. Liddy Products, Inc. just issued 10 -year, 8% coupon bonds at par. Outstand ing Limbaugh Corp. bonds, which have a maturity of 10 years, sell at a premium to (i.e at a price above) par and are viewed by investors as having the same risk as the Liddy bonds. Therefore, it must be true that: A) The coupon rate on the Limbaugh bonds is equal to that on the Liddy bonds. B) The coupon rate on the Limbaugh bonds is higher than that on the Liddy bonds. C) The coupon payment on the Limbaugh bonds is lower than that on the Liddy bonds. D) The yield on Limbaugh bonds is higher than the yield on Liddy bonds. E) The Limbaugh bonds pay coupons more often than twice a year