6. Which of the following statements is most correct? (2 points) 4 If a bond's coupon rate excevds its yield to maturity (VTMA, the boed's price must. be less than its par value (discount bond). b. If a bonds coupon rate exceeds its yield to maturity (NTM), the boed's price must be mote than its face value (prernium bond). c. If the price of the bond is same as par value, the yield to maturity mast be the same. as coupon rate (par boed). d. Answers b and c are both correct. e. None of the above answers are correct. 7. If interest rates increase from 6 percent to 7 percent, which of the following bonds will have the largest percentage decrease in its value? (2 points) a. A 10-year zero-coupon bond. b. A 10 -year bond with a 10 peroend scmil-annat coepon. c. A 30 -year zero-coupon bond. d. A 5 -year nero-coupon bond. c. A 5 -year bond with a 12 percent semi-annul coupen. 8. If interest rates decrease from 6 percent to 5 percent, which of the following bonds will have the smallest percentage increase in its value? (2 points) a. A 10-year rero-coupon bond. b. A 10-year bond with a 10 percent semi-anhal cocpoe c. A 7 -year bond with a 10 pereent seni-anaual coupen. d.A S-year zero-coupon bond. S. A 5-year bond with a 12 percent semi-anaul coupon. 9. Other things held constant, if a bond indenture contains convertible feature, the price of the bond that would exist with such a convertible provision will generally be the price without it. (2 points) a. Higher than b. Lower than c. The same as d. Eather higher of lower, depending on the level of call premiun, then 10. The terms and conditions to which a bond is subject are set forth in its (2 points) a. Debenture. b. Uaderwriting agrecment. c. Indenture: d. Restrictive covenants: c. Call provision. 11. Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds? ( 2 points) a. Increase in interest rates. b. Decrease in interest rates