6. The Interest Rate sensitive securities possess well defined risk and return characteristics

that are a function of the structural features of a particular security and how the price of the

security responds to changes in the many factors that are used to derive its price. The

characteristic known as pull to par is best defined as the characteristic where by:

A. The price of the fixed rate bond equals the par value as the result of the yield to

maturity equalling the coupon rate on a coupon payment date.

B. The price of the fixed rate bond equals its par value at the time of the securitys

issuance,

C. The random chance of the price of the fixed rate bond equalling its par value over

time,

D. The price of the fixed rate bond, in the abscence of default, converging in to the par

value of the security as time passes and the term to maturity of the security reduces

to zero