6. Which rate will force market price of a bond to equal its present value of cash flows? real interest rate, nominal interest rate, yield to maturity, coupon interest rate, discount interest rate

9. Which of the following could be negative in the economy? only real interest rates, only nominal interest rates, neither, both

12. The ______ represents the change in purchasing power over a period of time. nominal interest rate, real interest rate, APR, EAR

24. A bond that has a CCC rating would have a ______ coupon rate since its risk of default is ______. High, High; High, low; Low, low

25. There is currently a bond that is selling for $1,100. It will mature in 20 years and was originally issued with a coupon rate of 4%. Market interest rates have ______ since the bond was issued which is causing this bond to sell for a (increased/decreased) (premium/discount)

27. If you purchase a premium bond, you will earn a capital ______ and ultimately earn the ______ rate (gain/loss) (coupon/market)

29. Since there is a ______ relationship between bond prices and interest rates, bond prices will ______ whenever market interest rates decrease (direct/indirect) (decrease/increase)

32. There is currently a bond available to purchase that has a 3% coupon rate and 10 years left to maturity. You require a return of 5% based on the riskiness of this bond. If you purchase this bond, you will earn a capital ______ and earn ______ if you hold the bond to maturity (gain /loss) (3%/5%)